RSRobince Studio

Markup and Margin Calculator

Know your cost and one other number? Enter your cost plus either the markup percent, the margin percent or the selling price, and the calculator works out the rest, including the profit. A small table shows how markup and margin compare.

Runs in your browser. Your files are never uploaded.

Loading Markup and Margin Calculator…

How to use Markup and Margin Calculator

  1. Enter your cost.
  2. Choose what you already know: markup percent, margin percent or selling price.
  3. Type that value.
  4. Read the selling price, profit, markup and margin on the right, and compare with the table below.

Markup versus margin

Markup is profit divided by cost. Margin is profit divided by the selling price. Because the price is larger than the cost, margin is always a smaller number than markup for the same sale. Mixing the two up is a common pricing mistake.

Use markup when you set a price from your cost, for example adding 40 percent to what you paid. Use margin when you judge how much of each sale is profit, for example in reports.

  • Markup = profit / cost x 100.
  • Margin = profit / price x 100.
  • Price = cost x (1 + markup).
  • Price = cost / (1 - margin).

Using the table

The table shows the margin that results from common markup percentages, and the markup you need to reach a given margin. A 100 percent markup (doubling your cost) is only a 50 percent margin. A margin of 75 percent needs a 300 percent markup.

What the cost should include

Use the full cost of the item to you, such as purchase price plus delivery or materials. Overheads, fees and taxes are not added automatically, so include them in the cost if you want them covered.

Limits

All calculations happen in your browser, and nothing you type is uploaded or stored on a server. Results are estimates and do not include tax, discounts, fees or other costs unless you add them to the cost. Margin must be below 100 percent. This tool is not financial advice.

Why use this markup and margin calculator tool

  • Three ways in. Start from markup, margin or selling price and get the other values.
  • Profit shown. See the profit amount in money as well as the two percentages.
  • Comparison table. A table shows the margin you get from common markups and the markup a target margin needs.
  • Plain-language guide. The guide explains why markup and margin are different and which to use.

Frequently asked questions

What is the difference between markup and margin?

Both describe profit as a percentage, but markup divides profit by cost while margin divides profit by selling price. For an item costing 50 and sold for 70, profit is 20, markup is 40 percent and margin is about 28.6 percent.

How do I calculate selling price from markup?

Multiply the cost by one plus the markup as a decimal. With a cost of 50 and a 40 percent markup, the price is 50 times 1.4, which is 70. Enter your cost and markup here to get the price and profit.

How do I calculate selling price from a target margin?

Divide the cost by one minus the margin as a decimal. For a cost of 50 and a 30 percent margin, the price is 50 divided by 0.7, about 71.43. Margin must always be below 100 percent. You can change any value at any time and the result updates immediately, so it is easy to compare a few different options before deciding.

Why is a 50 percent markup not a 50 percent margin?

Because they use different bases. A 50 percent markup on a cost of 100 gives a price of 150 and a profit of 50. Profit is 50 percent of cost but only about 33 percent of the price, so the margin is 33 percent.

Is my pricing data private?

Yes. Your cost and prices stay in your browser and are used only to calculate the results. Nothing is uploaded or saved on a server, and no account is required. It works on your own device, so it is safe to use with private figures, and it keeps working if you go offline after the page has loaded.

More free tools

Budget Planner

Plan a monthly budget online for free. Add income and expenses, compare planned vs actual, check the 50/30/20 rule, see charts, export CSV or PDF.

Open tool

Mortgage Calculator

Work out your monthly mortgage payment from price, down payment, rate and term, with optional tax, insurance and HOA, total interest and a yearly payoff table.

Open tool

Simple Interest Calculator

Calculate simple interest and the total amount from principal, annual rate and time in years, months or days. Shows the formula and a worked example.

Open tool