Margin & Markup Calculator

Convert cost and selling price into profit, margin, and markup percentages.

Business Direct route, no hidden menu

Result

Profit

$0.00

Margin

Markup

How It Works

Margin and markup both describe profit, but they use different bases. Margin divides profit by selling price, while markup divides profit by cost. This calculator helps translate between cost, selling price, margin, and markup so pricing decisions are easier to compare.

Example

If a product costs $60 and sells for $100, profit is $40. Margin is 40% of the selling price, while markup is 66.67% of the cost.

Pricing checks before launch

Confirm product cost is accurate.
Add transaction and marketplace fees.
Test discount scenarios before publishing coupons.
Compare target margin with competitors and customer willingness to pay.

Avoid margin/markup confusion

A 50% markup does not mean a 50% margin.
Margin cannot exceed 100% in normal positive-price cases.
Markup can exceed 100% when selling price is much higher than cost.
Use the same metric consistently in reports.

Frequently Asked Questions

Is margin the same as markup?

No. Margin uses selling price as the base. Markup uses cost as the base, so the percentages are usually different.

Which one should I use for pricing?

Many businesses use margin to understand profitability and markup to set prices from cost. Use whichever matches your reporting workflow.

Should overhead be included in cost?

For stronger pricing decisions, include variable costs and consider overhead, platform fees, labor, and shipping where relevant.

Why can a high markup still produce low profit?

Low volume, high fixed costs, refunds, discounts, and advertising can reduce actual business profit even when product markup looks high.