Markup & Margin Calculator
From cost and selling price, get the profit, markup % and margin % (the two are often confused).
Result
Profit
500.00
Markup (%)
50.00
Margin (%)
33.33
How it works
Markup and margin describe the same profit from two different reference points. Markup divides the profit by the cost, margin divides it by the selling price. Buy at 100 and sell at 140: the profit of 40 is a 40% markup but a 28.6% margin. Markup is the pricing tool — it is how you get from a known cost to a price. Margin is the reporting tool — it is what accounts and comparisons use, because it expresses profit as a share of revenue. Confusing them is the classic retail error, and it always flatters the business. The conversion is worth memorising: margin = markup ÷ (1 + markup). A 50% markup is a 33% margin; a 100% markup is a 50% margin. Any supplier quoting "50% profit" is describing one of the two, and the difference decides whether a price actually works.
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Frequently asked questions
What is the difference between markup and margin?
Markup is based on cost, margin on selling price. Buy at 1,000, sell at 1,500: markup = 50%, margin = 33%.
How do I set a price from a target markup?
Selling price = cost × (1 + markup ÷ 100).
Does a 20% discount cancel a 20% markup?
No, and this catches out many sellers. Cost 100 with 20% markup gives a price of 120; a 20% discount on 120 is 96 — four below cost. The discount is taken on the larger number, so it always bites deeper than the markup added.
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