Margin and markup
Use price and unit cost to compare margin with markup. Set a target margin to calculate the corresponding selling price where it is attainable.
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Result
Worked example
This example uses the same calculation as the form. Enter your values and select “Calculate” to see your result.
Example inputs
- Selling price: 1000
- Unit cost: 600
- Target margin: 40
Example result
- Contribution profit: RUB 400
- Margin: 40%
- Markup: 66.67%
- Required selling price: RUB 1,000
- Margin is contribution divided by selling price; markup is contribution divided by unit cost.
- A target margin of 100% or more cannot produce a finite selling price.
- Margin and markup are different measures: a 40% margin and a 40% markup produce different prices.
- A 100% target margin is unattainable: it would require an infinite price, so no result is available.
Formulas and units
profitPerUnit = price − unitCost— Contribution per unit before fixed costs.margin = profitPerUnit / price × 100%— Contribution per unit as a share of selling price.markup = profitPerUnit / unitCost × 100%— Contribution per unit relative to unit cost.priceFromTargetMargin = unitCost / (1 − targetMargin)— Selling price needed to reach the target margin.
Values are rounded for display only; enter percentages on a 0–100 scale. See the methodology.
Formula version: 1.0
Checked 2026-09-26.