Markup vs Margin Calculator

Enter cost and selling price to see markup and margin percentages side by side, plus the profit per unit.

Markup vs Margin Calculator tool

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Example

Input: Cost price $50, selling price $80

Result: Markup 60.00%, Margin 37.50%, Profit $30.00

Profit is $30. Markup = 30 / 50 cost = 60%; margin = 30 / 80 price = 37.5%.

Markup to Margin Conversions

MarkupMarginPrice on a $100 Cost
10.0%9.1%$110.00
20.0%16.7%$120.00
25.0%20.0%$125.00
33.3%25.0%$133.33
50.0%33.3%$150.00
75.0%42.9%$175.00
100.0%50.0%$200.00
150.0%60.0%$250.00
200.0%66.7%$300.00

Margin = markup / (1 + markup), rounded to one decimal.

  1. Enter the cost price (what you paid for the item).
  2. Enter the selling price (what you charge the customer).
  3. View both the markup and margin calculated side by side.
  4. See the profit amount per unit alongside the cost and selling price.
  5. Click the copy button to copy any calculated value.

Markup vs Margin: Why the Numbers Differ

Markup and margin both measure profit, but against different bases. Markup compares profit with cost. Margin compares profit with the selling price. Buy at $50, sell at $80, and the $30 profit is a 60% markup but only a 37.5% margin.

Enter the cost price and the selling price. The tool shows the markup, the margin and the profit per unit side by side. If the cost is 0, markup has no meaning and shows as N/A. The same happens to margin when the price is 0. A selling price below cost gives a negative profit and negative percentages.

Mixing the two up is a classic pricing mistake. Say you want a 50% margin and add 50% to cost. You end up with only a 33.3% margin. To hit a 50% margin, you need a 100% markup, which means doubling the cost. The table below shows common markups and the margins they give.

Two formulas convert between them. Margin = markup / (1 + markup), so a 25% markup is a 20% margin. Markup = margin / (1 - margin), so a 40% margin needs a 66.7% markup. Margin can never reach 100%, but markup has no upper limit. Retailers often set prices with markup, while accountants and investors talk in margin. For a full view of a business, with operating costs, interest and taxes, use the Profit Margin Calculator.

Formula / How It Works

Markup = (Selling Price - Cost) / Cost x 100. Margin = (Selling Price - Cost) / Selling Price x 100. Margin = Markup / (1 + Markup). Markup = Margin / (1 - Margin).

Frequently Asked Questions

Markup is profit divided by cost. Margin is profit divided by the selling price. Buying at $60 and selling at $100 gives a $40 profit, which is a 66.7% markup and a 40% margin. Margin is always the smaller figure when there is a profit.
Use margin = markup / (1 + markup), with both as decimals. A 50% markup is 0.5 / 1.5 = 0.333, or a 33.3% margin. A 100% markup gives a 50% margin. The table on this page lists other common conversions.
Use markup = margin / (1 - margin). For a 30% margin, that is 0.3 / 0.7 = 0.4286, or about 42.9%. So an item that costs $70 should sell for about $100. Check the result by entering both prices in this tool.
No. Margin is profit as a share of the price, and profit can never be larger than the price. Markup can go well above 100%. An item that costs $10 and sells for $50 has a 400% markup but an 80% margin.

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