Margin & Markup Calculator
Calculate profit margin and markup from cost and price — or find the selling price for a target margin or markup. Margin and markup are different percentages of the same profit; see the FAQ below if that's new to you.
Calculated locally. Full precision — never rounded until it's displayed.
Common questions
What's the actual difference between margin and markup?
They're both "profit as a percentage," but of different bases. Margin is profit divided by the selling price — how much of what the customer pays is profit. Markup is profit divided by cost — how much you added on top of what you paid. For a $80 cost sold at $100 ($20 profit), that's a 20% margin (20/100) but a 25% markup (20/80) — two different, both correct, numbers for the exact same sale. Mixing them up is one of the most common pricing mistakes.
Why is margin always a smaller percentage than markup, for the same profit?
Because the selling price is always higher than the cost (when there's a profit), and margin divides by that larger number while markup divides by the smaller one. The two convert into each other with markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup) — they describe the same $20 profit, just relative to different starting points.
Which one should I use when setting a price?
It depends on what you're solving for. If you know what profit margin you need on your revenue (common in retail and financial planning), use "cost + target margin." If you're used to thinking in terms of a fixed percentage added on top of cost (common in wholesale and trade pricing), use "cost + target markup." Both modes here find the exact same kind of answer — the selling price — just from a different starting percentage.
Can margin or markup be negative?
Yes — a negative value simply means you're selling below cost (a loss), which is a real scenario for loss-leader pricing or clearance sales. This calculator supports it in every mode rather than treating it as an error.