Turn cost and price into profit margin, markup and profit in reais — or work backwards to the price you should charge.
Margin and markup describe the same profit against two different bases, and mixing them up is the most expensive arithmetic mistake a small business makes. Profit is the easy part: a product that costs R$ 60 and sells for R$ 100 leaves R$ 40. Divide that R$ 40 by the price of R$ 100 and you get the profit margin, 40%. Divide the same R$ 40 by the cost of R$ 60 and you get the markup, 66,67%. Same product, same money, two numbers that look nothing alike — and the gap widens as profits grow.
That is why the reverse modes matter. If you want a 40% margin on a cost of R$ 60, you cannot add 40% to the cost: R$ 84 would give you a margin of only 28,6%. The correct move is to divide, not multiply — price = cost ÷ (1 − 0,40) = R$ 100. The markup mode does the multiplication instead, price = cost × (1 + markup ÷ 100), which is how most distributors and wholesalers quote their prices. The tool always shows both figures side by side, so whichever number your supplier, your accountant or your marketplace uses, you can translate it into the other in one glance.
A margin can never reach 100%, because the margin is a slice of the price and the cost has to fit in the rest of it; a markup, on the other hand, has no ceiling at all — 300% markup is perfectly normal in some trades. Use this calculator to check a supplier quote, to compare products on the same yardstick, or to see what a discount really does to your profit. It works with a single product and gross figures: fixed costs, taxes and card fees are not deducted here, so the margin shown is a gross margin, not the money left in your pocket at the end of the month. Everything is computed in JavaScript on your own device, and no cost, price or product name is ever sent anywhere.
Margin = (price − cost) ÷ price × 100. Markup = (price − cost) ÷ cost × 100. Reversed: price = cost ÷ (1 − margin ÷ 100) and price = cost × (1 + markup ÷ 100). Between the two: markup = margin ÷ (100 − margin) × 100.
Margin divides the profit by the sale price; markup divides the same profit by the cost. A product bought for R$ 60 and sold for R$ 100 has a 40% margin and a 66,67% markup — the profit is the same R$ 40 in both cases, only the base changes.
No. A 50% markup on a cost of R$ 60 gives a price of R$ 90, which is a margin of 33,33%. To reach a 50% margin you would need to sell at R$ 120 — a 100% markup.
Divide the cost by 0,60, not by adding 40% to it. A cost of R$ 60 becomes R$ 100. Adding 40% to the cost would give R$ 84 and a margin of only 28,6%.
Because the margin is a share of the sale price, and the cost has to come out of that same price. A 100% margin would mean the product cost nothing. Markup has no such limit and can be 200% or 500%.
No. This is a gross margin on a single product, comparing price against cost only. To include taxes, card fees, commission and the profit you want inside the price, use the pricing calculator.
No. Every calculation runs locally in JavaScript on your device — nothing is uploaded, logged or stored.
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