🏷️ Markup & Margin Calculator
Find your selling price, or check your real profit margin.
How This Is Calculated
Selling Price from margin: Price = Cost ÷ (1 − Margin%). Example: $20 cost at 40% margin = $20 ÷ 0.60 = $33.33.
Margin from price: Margin% = (Price − Cost) ÷ Price × 100. Example: $20 cost, $33 price = ($33−$20) ÷ $33 × 100 = 39.4% margin.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup
and a 50% margin are different numbers — a $10 cost with 50% markup sells for $15, but a $10 cost with a
50% margin sells for $20.
Guide: understanding your result
- Markup = (Price − Cost) ÷ Cost. Margin = (Price − Cost) ÷ Price. The same sale always shows a higher markup than margin.
- To hit a target margin, Price = Cost ÷ (1 − margin). A 40% margin on a $60 cost needs a $100 price.
- Include shipping, payment fees and returns in cost, or the margin will be overstated.
Markup to margin
| Markup | Equivalent margin |
|---|---|
| 10% | 9.1% |
| 25% | 20.0% |
| 33.33% | 25.0% |
| 50% | 33.3% |
| 100% | 50.0% |
Common mistakes to avoid
- Pricing with a 30% markup while expecting a 30% margin.
- Leaving marketplace fees out of cost.
Frequently asked questions
Which should I use?
Retailers often think in markup when setting prices, while financial reports show margin. Use one consistently in your pricing decisions.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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