Markup and Margin Calculator
Markup is on cost, margin is on price. Enter either one and see both, plus the resulting price.
Selling price
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Profit
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Markup (on cost)
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Margin (on price)
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Worked example
A 50% markup on a cost of 60 gives a price of 90 and a margin of 33.3%. To achieve a 50% margin you need a 100% markup — the same word, two different numbers.
Markup and margin use the same profit figure against different bases, and confusing them is a standard way to lose money on a product line. Markup is profit over cost; margin is profit over price. Margin is always the smaller number, and it can never reach 100%.
The conversion
margin = markup / (1 + markup). A 50% markup is a 33.3% margin; a 100% markup is a 50% margin. Pricing to a target margin requires dividing by 1 − margin, not multiplying by 1 + margin.