Enter cost and price
yen
yen
Gross profit (price − cost)
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Price from a target margin
yen
%
Required price
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How to use the margin calculator
When pricing products, handmade goods or menu items, you want a quick read on "how much profit at this price?". From cost and price, this tool computes gross profit, margin, cost ratio and markup together.
Two calculations
The top card derives the ratios from cost and price; the bottom card works back to the price from a target margin. For "cost 600 with a 40% margin", the required price appears instantly.
Margin vs markup
The same "profit rate" differs as margin (profit ÷ price) and markup (profit ÷ cost). For cost 600 and price 1000, margin is 40% while markup is about 67%. Check which basis a counterpart uses. For tax-inclusive figures, convert to net first with the tax calculator.
Frequently asked questions
What is the difference between margin and cost ratio?+
Margin is gross profit (price − cost) as a percentage of price; cost ratio is cost as a percentage of price.
Margin plus cost ratio equals 100%.
Margin plus cost ratio equals 100%.
What is the difference between margin and markup?+
Margin is gross profit divided by price; markup is gross profit divided by cost.
The denominator differs, so the values differ. This tool shows both.
The denominator differs, so the values differ. This tool shows both.
How do I find the price from a target margin?+
Price = cost / (1 − target margin).
For example, a cost of 600 with a 40% target margin gives 600 / 0.6 = 1000.
For example, a cost of 600 with a 40% target margin gives 600 / 0.6 = 1000.
Is tax included?+
This tool assumes tax-exclusive cost and price.
To work with tax-inclusive figures, convert to net first with the tax calculator.
To work with tax-inclusive figures, convert to net first with the tax calculator.
Are my inputs stored?+
No. All calculation happens in your browser, and the values you enter are never sent to or stored on a server.
Definitions
・Gross profit = price − cost
・Margin (of price) = profit ÷ price × 100
・Cost ratio = cost ÷ price × 100 (= 100 − margin)
・Markup (of cost) = profit ÷ cost × 100
・Price from target = cost / (1 − target margin). Based on standard accounting/commercial definitions.
・Gross profit = price − cost
・Margin (of price) = profit ÷ price × 100
・Cost ratio = cost ÷ price × 100 (= 100 − margin)
・Markup (of cost) = profit ÷ cost × 100
・Price from target = cost / (1 − target margin). Based on standard accounting/commercial definitions.
Please note
This site does not represent any organization and does not guarantee the accuracy of the results. Definitions (margin vs markup) vary by industry and source. For exact accounting or tax treatment, consult a professional such as an accountant.
This site does not represent any organization and does not guarantee the accuracy of the results. Definitions (margin vs markup) vary by industry and source. For exact accounting or tax treatment, consult a professional such as an accountant.