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Markup vs Margin Calculator

Compare markup and margin percentages and convert between them.

Introduction

Markup vs Margin Calculator — Compare markup and margin percentages and convert between them. Enter Cost, Price to get an instant, accurate result.

Formula

Markup % = (price − cost) / cost × 100. Margin % = (price − cost) / price × 100. Conversion identities: margin = markup / (1 + markup); markup = margin / (1 − margin), both expressed as decimals.

Step-by-step

  1. Enter the Cost.
  2. Enter the Price.
  3. Click Calculate to see your result instantly.

Real-world example

Example: With Cost = 60, Price = 100, the Markup vs Margin Calculator gives Profit: 40, Markup Pct: 66.6667, Margin Pct: 40.

Frequently Asked Questions

Why are markup and margin always different numbers?
Markup is profit as a percentage of cost, while margin is profit as a percentage of price (the larger denominator) — so margin is always a smaller percentage than markup for the same sale, except at 0%.
If I want a 50% margin, what markup do I need?
Using markup = margin / (1 − margin): 0.5 / (1 − 0.5) = 1.0, or 100% markup — a common mix-up, since a 50% markup only produces a 33.3% margin.
What inputs does the Markup vs Margin Calculator need?
You'll need to provide: Cost, Price. All fields use sensible defaults, so you can see a working example immediately and then adjust the values to match your own numbers.
How accurate is the Markup vs Margin Calculator?
The Markup vs Margin Calculator applies the formula exactly as calculated — Markup % = (price − cost) / cost × 100. Margin % = (price − cost) / price × 100. Conversion identities: margin = markup / (1 + markup); markup = margin / (1 − margin), both expressed as decimals. — so results are precise for the inputs you provide. Accuracy depends on entering correct, realistic input values.
Is the Markup vs Margin Calculator free to use?
Yes, the Markup vs Margin Calculator is completely free, requires no signup, and runs instantly in your browser.

About the Markup vs Margin Calculator

The Markup vs Margin Calculator uses a real, verifiable formula — Markup % = (price − cost) / cost × 100. Margin % = (price − cost) / price × 100. Conversion identities: margin = markup / (1 + markup); markup = margin / (1 − margin), both expressed as decimals. — so results are accurate every time, not an approximation.