What is Markup/Margin Calculator?

The Markup/Margin Calculator converts between markup percentage and profit margin — two commonly confused pricing metrics. Enter cost and either markup or margin to see selling price, profit amount, and the equivalent percentage. Includes a comparison table for common values.

Markup is the percentage added to your cost; margin is the percentage of the selling price that ends up as profit. A 40% markup on a $25 item gives a $35 selling price and only a 28.57% margin. The calculator runs the math both ways, with a side-by-side table so you can compare a 50%, 75%, or 100% markup at a glance.

How to use

1. Pick a mode (Markup, Margin, or Reverse), then enter the cost and the matching second value (the percentage you want, or the price you already charge).
2. The calculator instantly shows the selling price, profit per unit, and converts between markup and margin so you see both values.
3. View the reference table at your own cost, expand the discount panel to test sale pricing, or compare your markup to industry benchmarks.

When to use

• Pricing wholesale stock and need a consistent rule: cost plus 60% versus 60% margin give very different numbers.
• Reconciling a P&L where the accountant talks margin and the buyer talks markup, and you need to translate.
• Setting prices for a new product line and checking whether the target margin survives a planned discount.

Result

You buy widgets at $25 each and want a 40% markup. The calculator shows: selling price $35, profit $10/unit, and clarifies that a 40% markup equals a 28.57% profit margin — important distinction when your accountant asks about margins, not markups.

FAQ

What's the actual difference between markup and margin?

Markup uses cost as the base: profit divided by cost. Margin uses selling price as the base: profit divided by selling price. The same dollar profit produces a higher markup percentage than margin percentage because cost is always smaller than selling price.

Why does a 50% markup not give a 50% margin?

A 50% markup on $10 cost gives a $15 price and a $5 profit. That $5 is 50% of cost (markup) but only 33.33% of the $15 selling price (margin). The margin is always lower because you're dividing by a larger number.

Which one should I use when setting prices?

Most retailers and wholesalers think in markup because it's a direct multiplier on cost. Finance and accounting work in margin because it ties cleanly to revenue on the income statement. Knowing both keeps everyone on the same page.

Can margin ever be 100%?

No. A 100% margin would mean the cost is zero. As the markup grows without limit, margin approaches but never reaches 100%. A 900% markup, for instance, gives a 90% margin.

Does this work for service businesses?

Yes, if you treat your direct labour and material cost as the cost input. Gross margin on a service job uses the same formula as a physical product. Overhead and indirect costs sit further down the income statement.

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