What is the difference between markup and margin?
Markup is profit as a share of cost. Margin is profit as a share of the price. A 50% markup is a 33% margin.
Markup Calculator
Turn cost into a selling price.
Charge this
$0.00- Profit on each sale
- $0.00
- Markup
- —
- Margin
- —
How it’s calculated
- Price with markup = cost × (1 + markup)
- Price with margin = cost ÷ (1 − margin)
- Markup = profit ÷ cost, margin = profit ÷ price
Example: A $40 cost with a 50% markup sells for $60, which is a 33% margin.
About the Markup Calculator
A selling price from cost and markup or margin, or the markup and margin on a price you already charge.
How to use this tool
- Choose what you know.
- Enter what it costs you.
- Enter the markup, the margin or your price.