🏷️ 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.