Markup vs Margin Calculator
Convert between markup and margin, or work out the selling price and profit from your cost. Pick a mode, enter your numbers and read the results. Everything runs in your browser.
Enter your values and press Calculate.
How to use this markup vs margin calculator
- Choose a mode. Use the first if you know your cost and the markup you want to add. Use the second if you know the margin you want. Use the third if you already have a price and want to see both percentages.
- Enter your cost, then the second number that the mode asks for.
- Press Calculate or Enter. The results show the selling price, profit, markup and margin. Reset clears the boxes.
Markup vs margin formula
Markup and margin both describe profit as a percentage, but they divide by different things. Markup divides profit by cost. Margin divides profit by the selling price. This margin vs markup calculator uses these formulas:
- Price from markup = cost x (1 + markup / 100)
- Markup % = (price – cost) / cost x 100
- Margin % = (price – cost) / price x 100
- Price from margin = cost / (1 – margin / 100)
Why 40% markup is not 40% margin
Because the two percentages use different bases, the same profit gives two different numbers. Say an item costs 50 and you add a 40% markup. The profit is 40% of the cost, which is 20, so the price is 70. But that 20 of profit is only 28.57% of the 70 selling price, so the margin is 28.57%, not 40%. To earn a true 40% margin on a cost of 50, the price must be 50 / (1 – 0.40) = 83.33, which is a markup of 66.67%. Margin is always the smaller number, and the gap grows as the percentages rise.
Markup and margin conversion table
| Markup | Equals margin |
|---|---|
| 10% | 9.09% |
| 25% | 20% |
| 50% | 33.33% |
| 100% | 50% |
| Margin | Equals markup |
|---|---|
| 20% | 25% |
| 30% | 42.86% |
| 40% | 66.67% |
| 50% | 100% |
Worked examples
Cost 50 with a 40% markup gives a price of 70.00, profit of 20.00 and a margin of 28.57%. Cost 50 with a 40% margin gives a price of 83.33, profit of 33.33 and a markup of 66.67%. Cost 80 sold at 100 gives profit of 20.00, a markup of 25.00% and a margin of 20.00%. Cost 100 with a 100% markup gives a price of 200.00 and a margin of 50.00%.
Assumptions & limits
- The calculator uses one cost and one price. It does not add taxes, fees, shipping or discounts, so include them in your cost if they apply.
- A margin of 100% or more is impossible, because the cost would have to be zero or negative, so the tool shows an error. Cost must be above zero.
- Results are rounded to two decimals for display only.
- This is a maths tool, not financial advice. Check your own numbers before you set prices.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a share of cost. Margin is profit as a share of the selling price. The same sale shows both, and margin is always the smaller figure.
Can margin be higher than markup?
Not for a sale at a profit. Margin is below markup whenever the profit is positive, and the two are only equal at zero profit.
How do I convert markup to margin?
Divide the markup by 100 plus the markup. For example, a 25% markup becomes 25 / 125, which is a 20% margin.
How do I convert margin to markup?
Divide the margin by 100 minus the margin. For example, a 20% margin becomes 20 / 80, which is a 25% markup.
Why can’t I enter a 100% margin?
A 100% margin would mean the selling price is unlimited for any cost above zero. Enter a margin below 100.
Which should I use to set prices?
Either works if you stay consistent. Many sellers set prices with markup and judge results by margin, which is why this tool shows both.
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Last updated: October 2026