About margin and markup
This calculator turns a cost and selling price into the profit, the profit margin and the markup. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost — two different numbers that are easy to confuse. It helps you price products and understand profitability, all in your browser.
How Margin works
How to use it
- Enter the cost price and the selling price.
- The profit, margin % and markup % calculate instantly.
Margin vs markup
Margin = profit ÷ selling price, while markup = profit ÷ cost. A 50% markup is only a 33% margin, so it is important not to mix them up when pricing.
Pricing tip
Decide the margin you need, then set your price so that (price − cost) ÷ price hits that target. Higher-cost items usually need a smaller markup to reach the same margin.
Common uses
- Price products for a target profit
- Compare margin and markup
- Work out profit per sale
- Check retail or wholesale pricing
- Set consistent margins across products
- Understand profitability
- Plan discounts without losing money
- Quote jobs with the right markup
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost.
How do I calculate profit margin?
Divide profit (selling price − cost) by the selling price, then multiply by 100.
Is a 50% markup the same as a 50% margin?
No — a 50% markup equals about a 33% margin.
How do I price for a target margin?
Set price = cost ÷ (1 − margin). The tool helps you check the result.
Is my data uploaded?
No — it calculates in your browser.
Can I use any currency?
Yes — the percentages are the same regardless of currency.
Why is my margin lower than my markup?
Because margin is measured against the larger selling price, not the cost.
Is it free?
Yes — completely free with no sign-up.