What is the difference between margin and markup?

Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. They are not the same and produce different percentages for the same product.

How do you calculate markup?

Markup is calculated as (Profit ÷ Cost) × 100, where Profit = Selling price − Cost.

How do you calculate margin?

Margin is calculated as (Profit ÷ Selling price) × 100, where Profit = Selling price − Cost.

Is a 50% markup the same as a 50% margin?

No. A 50% markup equals a 33.33% margin because markup is based on cost and margin is based on selling price.

Margin Markup Calculator.

This margin vs markup calculator helps you price products and services correctly by calculating selling price, profit, margin, and markup. Enter your cost price and choose whether you want to calculate using markup % or margin %.
Margin and markup are often confused, but they produce very different results. This calculator shows both values side by side so you can price confidently.

Use our Margin Markup Calculator

Use this margin and markup calculator to price products and services correctly. Enter your cost price and either a markup % or margin % to calculate selling price, profit, and the equivalent rate.

Margin / Markup Calculator

Currency

Calculate using

Markup is based on cost. Margin is based on selling price.

Cost price

Your cost to produce, buy, or deliver the item.

Markup (%)

Example: 50% markup on £10 cost adds £5 profit.

Margin (%)

Example: 33.33% margin means 1/3 of selling price is profit.

Selling price (optional override)

Optional: enter a selling price to back-calculate margin and markup.

Selling price

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Profit

—

Selling price − cost price

Margin

—

Profit ÷ selling price

Markup

—

Profit ÷ cost price

Show formulas and steps

Markup formula: Selling price = Cost × (1 + Markup/100)

Margin formula: Selling price = Cost ÷ (1 − Margin/100)

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What Is Markup?

Markup is the amount you add to the cost, expressed as a percentage of the cost.

Markup formula:
Markup (%) = (Profit ÷ Cost) × 100

Example: Cost £10, selling price £15
Profit = £5 → markup = (5 ÷ 10) × 100 = 50%

What Is Margin?

Margin (profit margin) is profit as a percentage of the selling price.

Margin formula:
Margin (%) = (Profit ÷ Selling price) × 100

Example: Cost £10, selling price £15
Profit = £5 → margin = (5 ÷ 15) × 100 = 33.33%

Margin vs Markup: What’s the Difference?

Markup is based on cost
Margin is based on the selling price

That’s why a 50% markup equals a 33.33% margin.

How to Use This Calculator

Enter your cost price
Choose Markup % or Margin %
Optionally enter a selling price to back-calculate both rates
View your selling price, profit, margin, and markup instantly

Summary

Use this margin and markup calculator to avoid pricing errors, protect profitability, and understand the difference between margin and markup when setting prices.