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.
How it's worked out
Markup = (price − cost) ÷ cost. → $6.00 ÷ $4.00 = 150%
Margin = (price − cost) ÷ price. → $6.00 ÷ $10.00 = 60%
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%
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.