Markup vs Margin Calculator

Understand the difference and calculate pricing for your business

What's the Difference?

πŸ“Š Markup: Markup is the percentage added to your cost to determine the selling price. It's calculated based on cost.

πŸ’° Margin: Margin is the percentage of the selling price that is profit. It's calculated based on selling price.

πŸ’‘ Key Insight: Example: If an item costs $50 and you sell it for $75, you have a $25 profit. That's a 50% markup (25/50) but only a 33.33% margin (25/75).

Percentage added to cost

Results

Selling Price
$150.00
Markup
50.00%
Profit Margin
33.33%
Cost:$100.00
Profit:$50.00
Selling Price:$150.00

Visual Breakdown

Cost
Profit
Cost: 66.7% | Profit: 33.3%

Quick Reference: Common Markup vs Margin

Markup β†’ Margin
25% markup= 20% margin
50% markup= 33.33% margin
100% markup= 50% margin
Margin β†’ Markup
20% margin= 25% markup
33.33% margin= 50% markup
50% margin= 100% markup