Markup & Margin Calculator
Instantly convert between markup and margin percentages. Calculate selling price, profit, and cost from any starting point.
Markup & Margin Calculator
Convert between markup and margin, and compute profit instantly
Markup vs. Margin: What's the Difference?
Markup and margin both describe the relationship between cost and profit, but they use different bases. Markup is the percentage added to cost to arrive at the selling price (profit ÷ cost). Margin is the percentage of the selling price that is profit (profit ÷ revenue). A 100% markup equals a 50% margin — the same dollar profit, expressed two different ways.
How to Use This Calculator
Choose your starting point: enter cost and markup percentage, cost and margin percentage, or revenue and margin percentage. The calculator instantly computes the other values including selling price, profit, and the equivalent markup, margin, and multiplier. Use the quick reference table to see common conversion pairs at a glance.
Why It Matters for Pricing Strategy
Confusing markup with margin is one of the most common — and costly — pricing mistakes in business. A product with a 50% markup only yields a 33.3% margin, meaning one-third of revenue is profit, not one-half. Accurate margin calculations are essential for setting profitable prices, evaluating product lines, and meeting financial targets.