Margin/Markup Calculator
Calculate margin (profit as a % of selling price) and markup (profit as a % of cost) from the same cost and price — the two are commonly confused, so both are shown side by side — instantly, in your browser.
Calculate margin and markup from the same cost and selling price — the two are commonly confused, so both are shown together. Enter your cost and price below — the result updates instantly, entirely in your browser.
Formulas — and why they’re not the same number
- Margin (profit as a % of selling price):
((price − cost) ÷ price) × 100 - Markup (profit as a % of cost):
((price − cost) ÷ cost) × 100
Worked example: cost $60, price $100. Profit = $40. Margin = 40 ÷ 100 × 100 = 40%. Markup = 40 ÷ 60 × 100 ≈ 66.67%. Same profit, two different percentages — because they divide by different numbers (price vs. cost).
This is a general-purpose business calculator, not accounting or tax advice for your specific situation.
FAQs
Which should I use — margin or markup?
Margin is usually used to evaluate profitability as a share of revenue (common in financial reporting). Markup is usually used when setting a price by adding a percentage on top of cost (common in retail pricing). Neither is “more correct” — they answer different questions.