# Margin and Markup Calculator

URL: https://speedycalculator.com/calculators/finance/margin-and-markup/
Last updated: 2026-10-25

> The margin and markup calculator converts between margin and markup in both directions and, with a cost, shows the price and profit – so you never confuse the two.

## Inputs

- I know the
- Percentage (%)
- Cost

## Results

- Margin
- Markup
- Selling price
- Profit

## Formula

```
Margin = markup ÷ (1 + markup)
Markup = margin ÷ (1 − margin)
Price = cost × (1 + markup) = cost ÷ (1 − margin)
```

## Explanation

Because margin is based on price and markup on cost, the same profit gives a smaller margin than markup: 25% markup = 20% margin; 100% markup = 50% margin.

### How to use the Margin and Markup Calculator

- **I know the**
- **Percentage**
- **Cost**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose what you know, enter the percentage and, optionally, the cost.

### Tips

- Know the difference between margin (profit ÷ price) and markup (profit ÷ cost).
- Apply successive discounts one after another – they do not simply add up.
- Check whether prices already include sales tax or VAT.
- Round prices only at the very end of the calculation.

### Common mistakes to avoid

- Adding discount percentages together.
- Pricing from a target margin using the markup formula.
- Forgetting payment-processing and shipping fees.

### Inputs explained

FieldWhat to enterI know theChoose one: Markup, MarginPercentageIn %CostAmount in your currency

### What each result means

- **Selling price** = [Cost]×(1 + [Markup]÷100)
- **Profit** = [Selling price] - [Cost]

### Example values

How the main result changes when **Percentage** changes and everything else stays at the example values above:

Percentage (%)Margin (%)2016.673023.084028.575033.336037.58044.44

## Worked example

Inputs — I know the: Markup; Percentage: 40 %; Cost: $100.

Results — **Margin = 28.57 %**; Markup = 40 %; Selling price = $140.00; Profit = $40.00.

## FAQ

**Is 40% markup the same as 40% margin?**
No – 40% markup is a 28.6% margin.

**How do I convert margin to markup?**
Markup = margin ÷ (1 − margin).

**Which should I use?**
Margin for profitability analysis; markup is convenient for pricing from cost.

**What formula does the Margin and Markup Calculator use?**
Margin = markup ÷ (1 + markup).