Markup & Margin Calculator
Calculate profit, markup percentage, and profit margin from cost and selling price. Understand the difference between markup and margin.
Currency
$
$
Examples
Find markup and margin for a $30 profit
Profit
$30.00
Markup
60%
Margin
37.5%
Healthy margin at 37.5%.
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Examples
How It Works
Formula
Variables
- Your cost to acquire or produce the item
- The selling price charged to customers
- Selling price minus cost
Profit is what is left of the selling price after covering cost. Markup expresses that profit as a percentage of cost (cost-based pricing); margin expresses it as a percentage of the selling price (revenue-based reporting). For the same product, markup is larger than margin whenever the price is above the cost (because the same profit is divided by a smaller denominator).
Frequently Asked Questions
01What is the difference between markup and margin?
Markup is the profit as a percentage of cost: (Profit/Cost)×100. Margin is the profit as a percentage of selling price: (Profit/Price)×100. Markup is always higher than margin for the same product.
02How do I calculate markup?
Markup = ((Selling Price − Cost) / Cost) × 100. For example, cost $50, price $80: markup = (30/50)×100 = 60%.
03How do I calculate margin?
Margin = ((Selling Price − Cost) / Selling Price) × 100. For example, cost $50, price $80: margin = (30/80)×100 = 37.5%.
04Why does markup and margin matter?
Markup helps set prices based on costs. Margin shows how much of each dollar of revenue is profit, which is key for financial reporting.
05Can margin exceed 100%?
No, margin is always less than 100% (it is profit divided by revenue). Markup, however, can exceed 100% when profit is greater than cost.