Margin = profit ÷ selling price; markup = profit ÷ cost. A product costing $60 sold at $100 has a 40% margin but a 66.7% markup — they are not the same. Enter cost and price to see both.
What is Markup & Margin Calculator?
Markup and margin both describe profit, but from different angles — and confusing them is one of the most common (and expensive) pricing mistakes. This tool converts between them so your pricing math is right.
How it works
Markup = profit as a percentage of cost. Margin = profit as a percentage of selling price. A product costing $60 sold at $100 has a 67% markup but only a 40% margin. Same dollars, very different percentages.
How to use this tool
Enter your cost and either your markup or your desired margin. The tool returns the selling price and the other metric, so you always price with the true profit in view.
Why it matters
Set prices by markup while thinking in margin and you'll quietly under-earn on every sale. This conversion keeps your pricing intentional — especially important when applying discounts, which eat margin faster than markup suggests.
Frequently asked questions
What's the difference between markup and margin?
Markup is based on cost, margin on selling price. A 50% markup equals only a 33% margin. Always confirm which one a supplier or report means.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 50% markup becomes 0.5 ÷ 1.5 = 33% margin. The tool does this instantly.
Which should I use for pricing?
Think in margin for profitability decisions, since it reflects what you actually keep per sale. Use markup as a quick pricing rule only once you know the margin it produces.