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Markup & Margin Calculator

Turn cost and price into profit, margin, and markup percentages.

Markup & margin

Profit
$40.00
Margin
40.00%
Markup
66.67%

Markup and margin both describe profit, but against different bases — and confusing them is a classic pricing mistake. The same dollar of profit is a smaller number as a margin than as a markup.

Two views of the same profit

Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs $60 and sells for $100 has a $40 profit — a 40% margin but a 66.7% markup. Knowing which one a supplier or report means keeps your pricing consistent.

Frequently asked questions

What's the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same profit is a larger number as a markup than as a margin.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). For example, a 66.7% markup equals a 40% margin.