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TabBench

Business & Marketing Calculators

Price with confidence: profit margins, break-even points, ROI and campaign tracking links.

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All Business & Marketing tools

About these tools

Margin and markup are computed from the same two numbers against different denominators, and confusing them is one of the most common and most expensive pricing errors there is. A 50% markup is a 33.3% margin — price a range on the wrong one and you under-earn on every unit.

These calculators show margin and markup together, and work backwards from a target margin to the price you need to charge, which is the direction pricing decisions actually run.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. An item costing 100 and selling for 150 has a 50% markup but a 33.3% margin. Confusing the two is a common and expensive pricing error.

How do I price for a target margin?

Divide the cost by (1 − target margin). For a 40% margin on a cost of 60, that is 60 ÷ 0.6 = 100. Adding 40% to the cost gives 84, which yields only a 28.6% margin.

What is a good profit margin?

It is entirely sector-dependent — grocery retail runs on low single digits, software often exceeds 80% gross. Compare against your own sector and your own trend rather than a universal benchmark.