Margin and markup calculator●
Work out margin, markup, profit and selling price from your cost and price.
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Margin and markup explained
Margin and markup both describe profit, but against different bases. Margin is profit divided by the selling price. Markup is profit divided by the cost. If something costs 60 and sells for 100, the profit is 40, the margin is 40% and the markup is 66.7%. Because the cost is smaller than the price, markup is always the larger number for the same profit. Use margin when you think in terms of how much of each sale you keep, and markup when you price by adding a percentage to the cost. To go from margin to markup, divide the margin by 100 minus the margin. This calculator works in all four directions and shows both figures together, so you can check your pricing against either rule of thumb. It does not add tax, fees or shipping, so include those in the cost if they matter.
Percentage calculator →Common questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. The same sale has a lower margin than markup, for example a 25% margin is a 33.3% markup.
How do I calculate the selling price from a margin?
Divide the cost by 1 minus the margin as a decimal. With a cost of 60 and a 40% margin the price is 60 / 0.6 = 100.
How do I calculate the selling price from a markup?
Multiply the cost by 1 plus the markup as a decimal. With a cost of 60 and a 50% markup the price is 60 x 1.5 = 90.
Can the margin be 100%?
No. A margin of 100% would mean the cost is zero. The margin is always below 100%, while markup has no upper limit.
Does it include tax or fees?
No. Add taxes, payment fees and shipping to the cost if you want them counted in the margin.