Business Finance Calculators
Markup vs Margin Calculator
Calculate markup and margin from cost and price, and find the price needed for a target margin.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Setting prices to hit a margin target
- Checking supplier and retailer quotes
- Training sales teams on discounting
- Converting between markup and margin
About this tool
What the Markup vs Margin Calculator does
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same sale always shows a higher markup than margin, and confusing the two is a common pricing mistake. This calculator shows both and converts a target margin into a price.
It also works as a markup on cost calculator or a margin to markup converter.
Formula
- Markup = (price − cost) ÷ cost × 100
- Margin = (price − cost) ÷ price × 100
- Price for a target margin = cost ÷ (1 − margin)
- Markup = margin ÷ (1 − margin)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Cost | $40.00 |
| Selling price | $60.00 |
| Target margin | 40% |
| Result | Value |
|---|---|
| Markup | 50.0% |
| Margin | 33.3% |
| Profit per unit | $20.00 |
| Price for target margin | $66.67 |
| Markup needed for target margin | 66.7% |
How to read the result
A 50% markup is only a 33% margin. If your target is a 50% margin, you need a 100% markup.
Margin can never reach 100%, but markup has no upper limit, which is why retailers often talk in markup and finance teams in margin.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Markup divides profit by cost; margin divides profit by price. A product bought for 40 and sold for 60 has a 50% markup and a 33.3% margin.
Markup = margin ÷ (1 − margin). A 40% margin is a 66.7% markup.
Either works if you are consistent. Margin is easier to compare with profit and loss figures.
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