🏷️ Markup & Margin Calculator
Markup is profit as a percentage of cost; margin is the same profit as a percentage of price — so they are never equal. Enter your values below — results update instantly, entirely on your device.
price 100 − cost 60
profit ÷ cost — what you add on top of cost
profit ÷ price — the share of revenue you keep
How the markup & margin calculator works
Profit = price − cost. Markup % = profit ÷ cost × 100 (based on what you paid). Margin % = profit ÷ price × 100 (based on what you charge). Because price is larger than cost, margin is always the smaller percentage.
Example: Cost 60, price 100 → 40 profit, 66.7% markup, 40% margin.
Confusing the two is a classic profit-killer: a "50% markup" is only a 33% margin, so pricing for a target margin using the markup number leaves you short. To hit a margin, price = cost ÷ (1 − margin); for a 40% margin on a 60 cost, price = 60 ÷ 0.6 = 100. Markup is convenient at the till; margin is what your accounts actually report.
Frequently asked questions
What is the difference between markup and margin?
Both measure the same profit, against different bases. Markup is profit as a percentage of cost (what you paid); margin is profit as a percentage of the selling price (what you charge). Since the price is higher than the cost, the margin percentage is always lower than the markup.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin; a 100% markup (doubling the price) is a 50% margin. The reverse: markup = margin ÷ (1 − margin).
How do I price for a target margin?
Divide the cost by (1 − target margin). For a 40% margin on a $60 item: 60 ÷ (1 − 0.40) = 60 ÷ 0.60 = $100. Pricing off the markup number instead would undershoot your intended margin.
Which should I use — markup or margin?
Retailers often think in markup because it's applied directly to cost. But margin is what appears in financial statements and what investors compare, so know both — and never assume a markup figure equals the margin.
Is this markup & margin calculator accurate and private?
Yes. It uses the standard published formula, shows its working under every result, and computes locally in your browser — your inputs are never sent to a server, and the page works offline.