Margin & Markup Calculator (Profit Estimator)
Setting the right price is the difference between a profitable business and a failing one. Many entrepreneurs make the fatal mistake of confusing Margin with Markup, leading them to underprice their products and lose money.
Pixedra’s Margin vs. Markup Calculator eliminates the guesswork. Simply enter your product's Cost Price and your desired Profit Margin, and we calculate the exact Selling Price you need to set. Whether you are selling on Amazon, Shopify, or a physical store, use this tool to protect your bottom line.
How to Use the Calculator
- Enter Cost Price: Input the total cost of your product or service.
- Set Your Profit Goal: Enter either your desired Margin % (recommended) or your target Markup %. The other value will update automatically.
- Get Your Price: The calculator instantly shows the required Selling Price you must charge to achieve your goal, along with the total Profit per sale.
Margin vs. Markup: The Key Difference
Markup ≠ Margin (common confusion)
Margin
Profit as a percentage of the Selling Price.
(Profit / Selling Price) * 100
Markup
Profit as a percentage of the Cost Price.
(Profit / Cost Price) * 100
Example Scenario
You buy a product for 100 and sell it for 150:
- Your Profit is 50.
- Your Markup is 50% (50 is 50% of the 100 Cost).
- Your Margin is 33.3% (50 is 33.3% of the 150 Selling Price).
Pro Tip: Most retailers and investors focus on Margin, while manufacturers focus on Markup.