Margin vs markup calculator — see both at once

Margin vs markup

They’re not the same number: a 50% markup is a 33.3% margin. Enter any two of cost, price, margin or markup and see all four together, decimal-exact.

I knowcost price

Margin40%Markup66.67%

cost 60.00 · price 100.00 · profit 40.00 · margin = profit ÷ price, markup = profit ÷ cost

Same profit, two bases

Margin and markup measure the same profit differently

The profit on a sale is one number. Markup expresses it as a fraction of what you paid (profit ÷ cost); margin expresses it as a fraction of what you charged (profit ÷ price). Because the selling price is always larger than the cost, the margin percentage is always lower than the markup — mixing them up quietly erodes profitability.

Markup → margin50% markup on cost 100price 150 · margin 33.3%

Target margin40% margin on cost 6060 ÷ 0.60 = €100

Target markup50% markup on cost 6060 × 1.50 = €90

Quick reference

20% markup = 16.7% margin
50% markup = 33.3% margin
100% markup = 50% margin
To hit a margin M, mark up by M ÷ (1 − M).

Enter your own numbers above and the calculator shows cost, price, profit, margin and markup at once.

Margin & markup questions

What’s the difference between margin and markup?

Both measure profit, against different bases. Markup is profit ÷ cost. Margin is profit ÷ selling price. Same profit, different denominator — so the two percentages never match.

Why is a 50% markup a 33.3% margin?

Buy at 100, mark up 50% → sell at 150. Profit is 50. Markup = 50 ÷ 100 = 50%. Margin = 50 ÷ 150 = 33.3%. Because price is always bigger than cost, margin is always the smaller number.

How do I price for a target margin?

Divide cost by (1 − margin/100). For a 40% margin on a €60 cost: 60 ÷ 0.60 = €100. This calculator does it for you — choose “Cost + margin %”.

How do I price for a target markup?

Multiply cost by (1 + markup/100). A 50% markup on €60 is 60 × 1.50 = €90. Pick “Cost + markup %” above.

Margin vs markup

Margin and markup measure the same profit differently

Quick reference

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