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Markup vs. Margin Calculator

Convert between markup % and margin % on a cost and selling price, and see the selling price and profit either way.

Selling price
$60.00
Profit per unit
$20.00
Markup %
50%
Margin %
33.33%

How it works

Markup and margin both measure the same profit (selling price minus cost) but as a percentage of two different bases: markup is profit ÷ cost, margin is profit ÷ selling price. Because the denominators differ, a 50% markup is not the same as a 50% margin — they're always different unless profit is zero.

Given cost and a selling price, both percentages fall straight out of that profit. Given cost and a target markup, the price is price = cost × (1 + markup ÷ 100). Given cost and a target margin, the price is price = cost ÷ (1 − margin ÷ 100) — margin can never reach 100%, since that would require an infinite price to make cost an infinitely small share of it.

FAQ

Why are markup and margin always different numbers?

Markup divides profit by the smaller number (cost), margin divides the same profit by the larger number (selling price, which already includes that profit) — dividing by a bigger denominator always gives a smaller percentage, so margin is always lower than markup for the same sale (except at 0%, where both are zero).

Which one should I use to price a product?

Margin is usually more useful for profitability planning, since it directly answers 'what share of each sales dollar is profit.' Markup is more common in retail and wholesale pricing conversations, since it's a simple multiplier on cost. This calculator converts between them either way.

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