Markup vs margin calculator — and why they differ
Check the markup and margin on a selling price, or find a price from cost and a chosen percentage. Both percentages are shown so you can compare the same profit on two different bases.
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Markup compares profit with cost; margin compares it with selling price. A 50% markup gives a margin of about 33%. Include all relevant costs before using the result to set a price.
How to use
- Choose what you know. Use cost and price, cost and markup %, or cost and margin %.
- Enter a positive unit cost. Use the same currency and tax basis for cost and selling price.
- Read profit and both percentages. A €100 cost and €150 price give €50 profit per unit, 50% markup and 33.33% margin before any costs left out of the input.
Questions
What is the difference between markup and margin?
Markup compares profit with cost; margin compares profit with selling price. In the €100-to-€150 example, €50 ÷ €100 is 50%, while €50 ÷ €150 is about 33.33%.
How do I price for a 40% margin?
Divide cost by the share of the price left after the margin: €100 ÷ 0.60 = about €166.67. A 40% markup would instead give €140, which has about a 28.57% margin.
Is Profit per unit my net business profit?
Only costs included in your unit-cost input are subtracted. Rent, marketing, tax and other expenses may still need to be covered. This is a unit-pricing calculation, not a full profit-and-loss statement.
Can I enter a 100% target margin?
Not with a positive cost. A 100% margin would leave none of the selling price to cover that cost, so this calculator requires a target below 100%. A 100% markup is different: it doubles cost and gives a 50% margin.
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