Markup vs Margin Calculator

Markup and margin describe the same profit from different bases — cost versus price — and confusing them causes real pricing mistakes. Enter your cost and price to see both, side by side.

Inputs

Cost

Selling price

Results

Margin (% of price)

38.0%

Markup (% of cost): 63.0%
Profit: $25.00
Margin-to-markup gap: 24.0%

Conversions: Margin = Markup ÷ (1 + Markup) · Markup = Margin ÷ (1 − Margin). They're equal only at 0%.

Formula

Margin = (Price − Cost) ÷ Price · Markup = (Price − Cost) ÷ Cost

FAQ

Which one do businesses usually quote?

Retail and product teams often speak in markup when setting prices; finance and reporting always use margin. Ask which base someone means before agreeing to a number.

Where do mistakes happen?

Applying a markup percentage when a margin was intended — e.g. 'add 30%' yields a ~23% margin. On large volumes that gap is real money.