Margin Calculator
Calculate trade margin, profit margin and markup for your products or services. Online calculator with current 2026 market rates and clear breakdown.
Margin
44.38 %
Share of selling price
Markup
79.80 %
Markup on purchase price
Profit / Unit
€39.90
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
What is the difference between margin and markup?
Margin is calculated on the selling price (profit/selling price times 100). Markup is calculated on the cost price (profit/cost price times 100). A 50% markup equals a 33.3% margin.
What is a healthy profit margin?
This varies greatly by industry. Retail typically has 2-5% net margin, services 10-20%, software/tech 15-40%. More important than the absolute number is how it compares to industry benchmarks.
Are my entered amounts stored anywhere?
No. All calculations happen exclusively in your browser. Your inputs are never sent to our server or stored. You can safely enter sensitive financial data.
Guide
Quick Answer
The margin calculator computes the trade margin, profit margin and mark-up from purchase and sale prices or vice versa.
What is the Margin Calculator?
The margin calculator computes the trade margin, profit margin and mark-up from purchase and sale prices or vice versa.
How does the Margin Calculator work?
Enter the purchase price and sale price. The calculator determines the margin (profit / sale price * 100) and the mark-up (profit / purchase price * 100). Alternatively it computes the sale price for a desired margin.
Key Data and Facts
Margin = (sale price - purchase price) / sale price. Mark-up = (sale price - purchase price) / purchase price. Margin and mark-up are not the same.
Step-by-Step Guide
How to calculate margin and markup step by step: 1. Enter the purchase price (net): the price at which you buy the goods. 2. Enter the selling price (net): the price at which you sell the goods. 3. Calculate the profit margin: profit = selling price - purchase price. 4. Calculate the profit margin (as a percentage): margin = profit / selling price x 100. The margin shows the profit's share of the selling price. 5. Calculate the markup: markup = profit / purchase price x 100. The markup shows what percentage is added to the purchase price. 6. Reverse calculation: to determine the selling price for a desired margin: SP = PP / (1 - margin/100). Example: purchase price 40 EUR, selling price 65 EUR. Profit: 25 EUR. Margin: 25 / 65 x 100 = 38.5 %. Markup: 25 / 40 x 100 = 62.5 %. Caution: a 38.5 % margin is not the same as a 38.5 % markup. For a desired margin of 50 %: SP = 40 / (1 - 0.5) = 80 EUR (the markup would be 100 %).
Calculation Example
Purchase EUR 40, sale EUR 65. Profit: EUR 25. Margin: 38.5%. Markup: 62.5%. For a desired margin of 50%: selling price = EUR 80 (= 100% markup).
Sources · E-E-A-T
Official sources
Calculations are based on applicable German laws and official data:
- Deutsche Bundesbank
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
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