Markup & Margin Calculator
Markup and margin both measure profit, but they're calculated differently. Markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. Enter your numbers below to see both at once.
How it works
Profit is simply the selling price minus the cost: Profit = Price − Cost.
Markup expresses that profit relative to your cost: Markup % = (Profit ÷ Cost) × 100. So if an item costs $50 and sells for $80, the $30 profit is a 60% markup.
Margin expresses the same profit relative to the selling price: Margin % = (Profit ÷ Price) × 100. The same $30 profit on an $80 price is a 37.5% margin. Margin is always lower than markup for the same sale.
Tips
Use margin when analyzing overall profitability, since it tells you what share of each sale you keep. Use markup when setting prices from a known cost.
A common mistake is confusing the two — a 50% markup is not a 50% margin. Always confirm which one a supplier or report is using before comparing numbers.
FAQ
What's the difference between markup and margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. For the same dollar profit, markup is always a higher percentage than margin.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup), using decimals. For example, a 0.50 (50%) markup equals 0.50 ÷ 1.50 = 0.333, or a 33.3% margin.
Can margin ever exceed 100%?
No. Margin is capped at 100% because profit cannot exceed the selling price. Markup, however, has no upper limit and can far exceed 100%.