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Calculators

Markup vs. margin calculator

Markup and margin measure the same profit, but markup divides it by the cost and margin divides it by the price.

From a cost and a price

Example numbers, made up: The starting numbers are made up, not real prices.

What you pay to make or buy one.

The price a customer pays for one.

Example numbers

Markup

150%

The $6.00 you add, as a share of the $4.00 cost.

Margin

60%

The same $6.00, as a share of the $10.00 price.

What it costs you, $4.00$4.00What you keep, $6.00$6.00
How it's worked out

Markup = (price − cost) ÷ cost. → $6.00 ÷ $4.00 = 150%

Margin = (price − cost) ÷ price. → $6.00 ÷ $10.00 = 60%

Turn one into the other

Type in either box; the other one changes to match.

A 50% markup is a 33.3% margin.

How it's worked out

Margin = markup ÷ (1 + markup). → 50% ÷ (100% + 50%) = 33.3%

Learn the idea behind it

  • Free lesson

    Margins: where each dollar goes

    Follow a sale down to profit, see why the same dollars make a bigger markup than margin, and compare three businesses' margins.

    Take the lesson

The numbers you type stay on this page and aren't sent anywhere. For learning, not financial advice.