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.
Inputs explained
| Field | What to enter |
|---|---|
| I know the | Choose one: Markup, Margin |
| Percentage | In % |
| Cost | Amount 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 (%) |
|---|---|
| 20 | 16.67 |
| 30 | 23.08 |
| 40 | 28.57 |
| 50 | 33.33 |
| 60 | 37.5 |
| 80 | 44.44 |
Formula
Margin = markup ÷ (1 + markup)
Markup = margin ÷ (1 − margin)
Price = cost × (1 + markup) = cost ÷ (1 − margin)
Worked example
Inputs: I know the: Markup; Percentage: 40 %; Cost: $100.
Results: Margin = 28.57 %; Markup = 40 %; Selling price = $140.00; Profit = $40.00.
Frequently asked questions
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.