Markup vs Margin Calculator
Markup % = (price − cost) / cost. Margin % = (price − cost) / price. Common confusion.
Result
Markup / Margin
100.0% / 50.0%
$50.00 profit per unit.
- Cost$50.00
- Price$100.00
- Profit$50.00
- Markup %100.000% (over cost)
- Margin %50.000% (of price)
Step-by-step
- Markup = profit / cost = 50.00 / 50 = 100.00%.
- Margin = profit / price = 50.00 / 100 = 50.00%.
How to use this calculator
- Enter cost + price.
- Read both metrics.
About this calculator
Markup is profit as a % of cost. Margin is profit as a % of price. Always different. 100% markup = 50% margin (cost $50 → $100 sale). 25% markup = 20% margin. Retail typically quotes margin (cleaner % below 100); contractors quote markup ("our markup is 25%"). Don't mix them: 25% markup on a $100 cost = $125; 25% margin on $100 cost would require $133 selling price.
Frequently asked
Only at 0% (sell at cost). Always: markup > margin for profitable sales.
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