Markup vs margin calculator — and why they differ
Calculate markup and margin from a cost and price, or work the price out from either percentage. The two are not the same, and mixing them up is expensive.
Runs entirely in your browser — nothing is uploaded.
Sets formatting only.
Markup and margin are not interchangeable, and confusing them is expensive: a 50% markup is only a 33% margin. Pricing from the wrong one quietly destroys profitability.
How to use
- Choose what you know. Cost and price, cost and a markup percentage, or cost and a target margin.
- Enter the figures. Both percentages are always shown so you can see the difference.
- Check which one you meant. Markup divides by cost; margin divides by price.
Questions
What is the difference between markup and margin?
Both measure the same profit against different bases. Markup is profit ÷ cost; margin is profit ÷ selling price. Buy at €100, sell at €150: that is a 50% markup but only a 33.3% margin.
Why does confusing them cost money?
Because pricing to a 40% markup when you needed a 40% margin leaves you short. To achieve a 40% margin you need a 66.7% markup. Businesses have gone under on exactly this arithmetic.
How do I convert between them?
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin). So a 50% markup is a 33.3% margin, and a 50% margin needs a 100% markup.
Can margin exceed 100%?
No. Margin is a share of the selling price, so it approaches 100% but never reaches it — that would mean zero cost. Markup has no upper limit.