Answerivo

Business & Finance

Markup vs Margin Calculator

Markup and margin are two views of the same profit, and confusing them costs real money: a 30% markup only leaves a 23.1% margin. Pick which number you have, enter it with your cost, and see the conversion along with the price and profit it produces.

Step 1

Enter your numbers

Enter the markup or margin selected above.

Used to show the resulting price and profit.

Results update as you type. Nothing you enter leaves your device.

Step 2

Results

Fill in the form and your results appear here instantly.

Estimates only. Verify important figures against your own records before acting on them. See our disclaimer.

What this calculator includes

What you enter

  • Which number do you have?
  • Percentage you have
  • Cost

What you get back

  • Markup
  • Margin
  • Selling price
  • Profit per unit
  • Price as a multiple of cost

How this calculation works

How this calculation works

Both numbers describe the same dollars of profit. Markup uses cost as the base, margin uses price, and price is always the bigger number — which is why margin is always the smaller percentage.

  • Markup → margin: margin % = markup ÷ (100 + markup) × 100
  • Margin → markup: markup % = margin ÷ (100 − margin) × 100
  • Selling price = cost × (1 + markup ÷ 100)
  • Profit = selling price − cost

What the result means

Markup and margin describe the same dollars of profit against different bases: markup divides by cost, margin divides by price. The selling price and profit shown are what your chosen percentage produces on the cost you entered.

Common mistakes and assumptions

  • Trying to convert a 100% margin — it is not reachable, since margin approaches 100% only as price runs away from cost.
  • Applying a target margin as a markup, which quietly underprices every job.
  • Marking up a cost that already includes profit from a supplier quote.

Worked example

You want a 35% margin on an item that costs $80, and need to know the markup to apply.

  1. 1Markup = 35 ÷ (100 − 35) × 100 = 53.85%.
  2. 2Selling price = $80 × 1.5385 = $123.08.
  3. 3Profit = $123.08 − $80 = $43.08.
  4. 4Check: $43.08 ÷ $123.08 = 35% margin, and $43.08 ÷ $80 = 53.85% markup.
  5. 5Marking up by 35% instead would have priced it at $108 — a 25.9% margin, well short of the target.

Frequently asked questions

Which should I use for pricing?
Set your target as a margin, because margin is what covers overhead and shows up in your accounts. Then convert it to a markup, because markup is what you actually apply to a cost when quoting.
Why is margin always lower than markup?
Both share the same profit, but margin divides it by the larger number (price) while markup divides by the smaller one (cost).
Is there a quick rule of thumb?
Common pairs worth memorising: 25% markup = 20% margin, 33.3% markup = 25% margin, 50% markup = 33.3% margin, 100% markup = 50% margin.
Can margin be over 100%?
No. Markup has no upper limit, but margin approaches 100% and never reaches it, since profit cannot exceed the price.

Disclaimer

This calculator returns estimates based only on the values you enter. It does not account for taxes, financing terms, local regulations, or conditions specific to your operation, and it is not accounting, legal, tax, or investment advice. Confirm any figure that carries real cost before you rely on it.

Calculations run entirely in your browser and the numbers you type are never sent to us or stored. Read how Answerivo calculators are built.

Formulas and worked example last reviewed .