Finance Calculators
Markup vs Margin Calculator
Sellers mix these up constantly — and it costs them money. Enter your cost and selling price to see both your markup (profit vs. cost) and your margin (profit v
Private by design: this tool runs 100% in your browser. Nothing you enter is sent, stored, or tracked.
How to use this calculator
- Enter your cost per unit.
- Enter your selling price.
- See markup %, margin %, and profit per unit instantly.
The formulas
Markup % = (price − cost) ÷ cost × 100. Margin % = (price − cost) ÷ price × 100.
Worked example
An item costs you $40 and sells for $60: markup = (60 − 40) ÷ 40 × 100 = 50%; margin = (60 − 40) ÷ 60 × 100 = 33.3%.
About this tool
Sellers mix these up constantly — and it costs them money. Enter your cost and selling price to see both your markup (profit vs. cost) and your margin (profit vs. price), side by side.
Frequently asked questions
What's the difference between markup and margin?
Markup is profit as a percent of COST; margin is profit as a percent of PRICE. Same dollars, different denominators — and very different numbers.
Which one should I use to set prices?
Use margin for pricing decisions and financial reporting (it reflects what share of revenue you keep). Use markup for quick cost-plus pricing.
Can margin be over 100%?
No — margin can never exceed 100% (you can't keep more than the price). Markup has no ceiling: a 300% markup is common in some retail.
How do I price for a target margin?
Price = cost ÷ (1 − target margin). For a 40% margin on a $30 cost: $30 ÷ 0.60 = $50 price.