Markup & Margin Calculator
Profit, markup and margin from a product's cost and selling price — and why markup and margin differ.
- Cost$60.00 60%
- Profit$40.00 40%
- Profit per unit$40.00
- Markup (profit ÷ cost)66.7%
- Margin (profit ÷ price)40.0%
Inputs used
- Cost$60.00
- Selling price$100.00
About this calculator
Markup and margin describe the same profit from two different viewpoints. Markup is profit as a share of cost: buy at 60, sell at 100, and the 40 profit is a 66.7% markup. Margin is profit as a share of the selling price: the same 40 is a 40% margin.
Mixing them up is one of the most expensive spreadsheet mistakes in retail. "50% margin" requires doubling the cost (100% markup) — pricing at cost × 1.5 gives only a 33% margin. When someone quotes a percentage, always ask: of cost, or of price?
Margin can never reach 100% (profit can't exceed the price), while markup is unbounded. This calculator shows both side by side so the two are never confused.
Quick reference
Margin at each selling price
Cost fixed at $100, so the selling price above $100 is also the markup — e.g. a $150 price is a 50% markup. The cell shows the resulting margin.
| Selling price | Margin (profit ÷ price) |
|---|---|
| $110 | 9.1% |
| $120 | 16.7% |
| $125 | 20.0% |
| $150 | 33.3% |
| $175 | 42.9% |
| $200 | 50.0% |
| $250 | 60.0% |
| $300 | 66.7% |
Frequently asked questions
What is the difference between markup and margin?
Both describe the same profit against a different base. Buying at $60 and selling at $100 gives $40 of profit: as a share of the $60 cost that is a 66.7% markup, and as a share of the $100 price it is a 40% margin.
How do I convert a markup into a margin?
Divide the markup by one plus the markup: margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin, and a 100% markup — doubling the cost — is a 50% margin.
Why can a margin never reach 100%?
Because margin is profit as a share of the selling price, and profit can never exceed the price itself. Markup has no such ceiling, since profit can be many times the cost.
What selling price gives a 50% margin?
Double the cost. A 50% margin means profit equals half the price, which happens when the price is twice the cost — so a $60 item must sell for $120, a 100% markup.
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Results are informational only — not financial, medical or legal advice.