Markup vs Margin Calculator
Convert between markup, margin, cost, and selling price.
Markup on cost: 40.00%
Margin on price: 28.57%
Markup is profit as a percent of cost. Margin is profit as a percent of price. A 50% markup is a 33% margin. Confusing the two is a common pricing mistake.
About
Markup is profit as a percent of cost. Margin is profit as a percent of price. They're not the same number and confusing them is a common pricing mistake. This tool converts between cost, markup percent, margin percent, and selling price in either direction.
How to use
- Pick which two values you have.
- Enter cost plus markup, margin, or selling price.
- Read the rest.
FAQ
What's the difference between markup and margin?+
If something costs $10 and sells for $15, the markup is 50% (5/10) and the margin is 33% (5/15). Same profit, different denominator.
Which should I use to set prices?+
Margin if you care about profitability as a percent of revenue. Markup if you're applying a multiplier on top of cost. Most retailers think in markup, accountants think in margin.