Result
Selling price
$37.50
- Profit per unit$12.50
- Markup %profit ÷ COST50.0%
- Margin %profit ÷ SELLING PRICE33.3%
- Cost-to-price ratio1.50×
- — Common confusion —
- Markup ≠ Margina 100% markup = 50% marginSame dollar profit, different denominator
How to use this calculator
- Enter your cost (what you paid to acquire/make the item).
- Type the markup percentage you want to apply.
- See the resulting selling price, dollar profit, and the equivalent margin %.
About this tool
The most-confused pair of percentages in retail. **Markup** is profit relative to your cost — "I bought it for $25 and sold for $50, that's a 100% markup." **Margin** is profit relative to the selling price — "$25 profit on a $50 sale, that's a 50% margin." Same dollar amount, different denominator. Vendors quote markup ("we made 100%!") to sound more impressive; investors and analysts quote margin to compare across companies. This calculator shows both side by side so you can speak whichever language fits your audience.
Frequently asked
Margin is the more honest metric — it answers "what % of each sale is profit." Markup is what you do TO the cost. Switch between them depending on whether you're thinking from cost-side (markup) or revenue-side (margin).
Advertisement
Related calculators
Profit Margin Calculator
Gross, operating, and net margin — three standard profitability ratios.
Break-Even Calculator
Units (and revenue) you need to sell to cover your fixed costs.
Percentage Calculator
Three-mode percentage tool — what is X% of Y, X is what % of Y, % change.
Investment Return Calculator
Total return, annualized return (CAGR), and dollar gain.