Markup vs Margin Calculator

See the difference between markup and margin so you stop underpricing by confusing the two.

Enter the details

Markup and margin sound alike but are different: markup is percent over cost, margin is percent of price. Confusing them

What this tool tells you

Markup and margin sound alike but are different: markup is percent over cost, margin is percent of price. Confusing them is how small businesses accidentally underprice. This calculator shows both so you price for the profit you intend.

How the math works

Enter your product cost and selling price. The calculator computes markup as (price − cost) / cost and margin as (price − cost) / price, displaying both percentages.

Frequently asked questions

What is the difference between markup and margin?

Markup is the percentage added to cost to get price; margin is the percentage of the final price that is profit. A 50% markup equals only a 33% margin.

How do I price for a 30% margin?

Divide your cost by (1 − 0.30). A $70 cost priced for a 30% margin becomes $100, leaving $30 (30% of $100) as profit.

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