Free Business Tool

Markup vs Margin Calculator

Enter your cost and selling price once and see both markup and margin calculated side by side — plus a clear explanation of why they're never the same number.

Both metrics, one input

Reference conversion table

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Markup vs Margin

Cost

Selling Price

The Difference

Markup is profit as a % of cost. Margin is profit as a % of price. Same profit, two different denominators — that's why they're never equal (except at 0%).

Side-by-Side Results

Profit

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Markup (% of cost)

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Margin (% of price)

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Snapshot

Enter cost and selling price to compare markup and margin.

A common pricing mistake is confusing the two — a 50% markup is not the same as a 50% margin. Use this to double-check whichever one your business tracks.

All calculations happen instantly in the browser. No sign-up, no data upload.

Markup vs Margin: What's the Difference?

Markup measures profit against what something cost you. If you buy a product for $60 and sell it for $100, your $40 profit is a 66.67% markup on the $60 cost.

Margin measures that same profit against what you sold it for. The same $40 profit on a $100 selling price is a 40% margin.

Same transaction, same dollar profit — two different percentages, because markup divides by cost and margin divides by price. Price is always higher than cost (when you're profitable), so margin is always a smaller number than markup.

Markup to Margin Reference Table

Common markup percentages and their equivalent margin.

Markup	Equivalent Margin
10%	9.09%
20%	16.67%
25%	20%
33.33%	25%
50%	33.33%
100%	50%
150%	60%
200%	66.67%

Frequently Asked Questions

What is the difference between markup and margin?

Markup is profit expressed as a percentage of cost (Profit ÷ Cost × 100). Margin is profit expressed as a percentage of selling price (Profit ÷ Price × 100). Same dollar profit, different base — so the two percentages are always different.

Is a 50% markup the same as a 50% margin?

No. A 50% markup on a $100 cost gives a $150 price and a 33.33% margin. A 50% margin on a $100 cost requires a $200 price (100% markup). Confusing the two is one of the most common pricing mistakes.

How do I convert markup to margin?

Margin % = Markup % ÷ (100 + Markup %) × 100. For example, a 25% markup converts to a 20% margin.

How do I convert margin to markup?

Markup % = Margin % ÷ (100 − Margin %) × 100. For example, a 20% margin converts to a 25% markup.

Which one should my business use?

Margin is more common for reporting profitability (it's what shows up on income statements), while markup is more common for setting prices from cost. Many businesses track both.