Impact Tech Solutions · Financial Calculators
Profit Margin / Markup Calculator
Formula Reference
Profit Margin % = (Price − Cost) ÷ Price × 100 (profit as a % of the selling price)Markup % = (Price − Cost) ÷ Cost × 100 (profit as a % of the cost)
Reverse (solve for price): Price = Cost ÷ (1 − Target Margin %)
Margin vs. Markup — Common Confusion
A 50% markup is NOT the same as a 50% margin. Cost 100, Price 150 = 50% markup but only 33.3% margin, since margin is measured against price, not cost.Methodology, interpretation & sources
Purpose. Calculates profit margin and markup from cost and price, or solves for the required selling price given a target margin.
How to use the result. Start with source data you can verify, enter values on a consistent unit and time basis, and record the assumptions used. The main inputs on this page include Cost per Unit, Selling Price per Unit, Target Profit Margin (%), Your Name, Email, Company Name. Re-run the calculation when those assumptions change rather than carrying an old result forward.
Decision use. Use this tool for scenario planning and comparison rather than as a substitute for professional financial advice. Financial assumptions can change the result materially, so test more than one scenario instead of relying on a single output.
Limitations. Check the time period, rate convention, compounding assumption and cash-flow timing before interpreting the result. Small changes in rates or timing can have a large cumulative effect.
Primary references. Use the current edition/version that applies to your jurisdiction and organization:
- State Bank of Pakistan (financial information)
- Investor.gov — financial calculators and investing basics
Editorial note. Prepared and maintained by Impact Tech Solutions. Editorially updated 28 September 2026. No individual professional credential is claimed on this page; high-consequence, statutory, tax, engineering or health decisions should be independently verified against the current primary source and, where required, a qualified professional.
Verification checklist before relying on this result
- Confirm the source and date of Cost per Unit, Selling Price per Unit, Target Profit Margin (%), Your Name, Email and keep units consistent.
- Check that zero, blank, percentage and currency entries mean what the calculator expects; do not use a placeholder value as real data.
- Repeat the calculation with a plausible low and high assumption to see whether the decision changes materially.
- Record the result together with the assumptions, not as a stand-alone number.
- For statutory, tax, engineering, health or safety decisions, compare the output with the current primary requirement and obtain competent review where required.
A calculator is most useful when it makes assumptions visible. If a small input change produces a very different outcome, treat that sensitivity as part of the decision rather than selecting only the most favorable result.