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Margin vs Markup Calculator

Convert between profit margin and markup. Enter cost and selling price to see margin and markup, or enter cost and margin % (or cost and markup %) to get the selling price and the other percentage. Perfect for pricing, retail, and understanding the difference between margin and markup.

Calculation Mode

Enter cost and selling price (or cost and margin %, or cost and markup %) to see results

Table of Contents

What is Margin vs Markup?

Margin and markup both describe profit relative to price, but they use different bases. Margin is profit as a percentage of the selling price (what the customer pays). Markup is profit as a percentage of cost (what you pay to produce or buy the item).

Example: Cost $50, Selling price $75. Profit = $25. Margin = 25 ÷ 75 = 33.33% (profit is 33.33% of the selling price). Markup = 25 ÷ 50 = 50% (profit is 50% of cost). The same dollar profit produces different percentages because the denominators differ. Confusing margin and markup can lead to underpricing or incorrect targets — this calculator helps you convert between them.

Formulas

Profit = Selling Price − Cost

Margin % = (Profit ÷ Selling Price) × 100

Markup % = (Profit ÷ Cost) × 100

From Cost and Margin %: Selling Price = Cost ÷ (1 − Margin/100). Example: 50% margin on cost $40 → SP = 40 ÷ 0.5 = $80.

From Cost and Markup %: Selling Price = Cost × (1 + Markup/100). Example: 50% markup on cost $40 → SP = 40 × 1.5 = $60.

Examples

  • Cost $50, Selling price $75 → Profit $25, Margin 33.33%, Markup 50%.
  • Cost $100, 25% margin → Selling price $133.33, Markup 33.33%.
  • Cost $100, 50% markup → Selling price $150, Margin 33.33%.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. For the same cost and selling price, margin is always a smaller percentage than markup (e.g. 33.33% margin = 50% markup when cost $50, SP $75).

Why do margin and markup differ for the same profit?

They use different denominators. Margin divides profit by selling price (larger number); markup divides profit by cost (smaller number). So the same dollar profit gives a smaller margin % and a larger markup %.

Which should I use for pricing?

Use margin when you want profit as a share of revenue (e.g. "we need 30% margin on every sale"). Use markup when you're adding a percentage on top of cost (e.g. "we add 50% markup to cost"). This calculator converts between them so you can work in either.