Markup vs Margin Calculator
Markup and margin are the most commonly confused numbers in small-business pricing. Enter your cost and one more value to see selling price, profit, markup % and margin % — all at once.
To calculate markup or margin, enter your cost price and either a markup %, margin %, or target sale price — the selling price, profit, markup % and margin % are all calculated and shown together.
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How to use Markup vs Margin Calculator
- 1Enter your cost price.
- 2Choose what you know: markup %, margin %, or sale price.
- 3Enter that value.
- 4See selling price, profit, markup % and margin % side by side.
Markup vs margin — the actual difference
Markup% = profit ÷ cost (profit as a percentage of what you paid). Margin% = profit ÷ selling price (profit as a percentage of what you charge). They're always different numbers for the same sale — a 50% markup is only a 33.3% margin — and mixing them up is one of the most common small-business pricing mistakes.
Why it matters
If you aim for a '50% margin' but accidentally price using a 50% markup formula, you'll under-price every sale by a meaningful amount — this compounds over hundreds of transactions.
Frequently Asked Questions
Which one should I use for pricing?
Margin is usually more useful for profitability planning (it tells you what share of revenue is profit), while markup is more common in retail/wholesale pricing conversations. This tool shows both so you're never guessing.
Can margin be 100% or more?
No — margin is always less than 100% (profit can never exceed the full selling price). Markup, on the other hand, can exceed 100%.
Is my financial data uploaded anywhere?
No. Every calculator on this site runs entirely in your browser — nothing you enter is sent to a server.
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