Enter any two values and the rest are calculated for you.
Calculate markup percentage, margin percentage, and profit
Markup is the percentage added to cost price. Margin is the percentage of selling price that is profit. Both calculate profit, but from different perspectives.
Markup and margin are not the same number. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup is only a 33.3% margin — confusing the two is a common way to underprice.
Markup measures profit against cost; margin measures profit against the selling price. On a $100 cost sold at $150, the markup is 50% but the margin is 33.3%.
Margin = markup / (1 + markup). A 50% markup gives 0.5 / 1.5 = 33.3% margin. This calculator converts between the two automatically.
It varies widely by industry - retail often runs on thinner margins than services. What matters more is that your margin covers overheads and leaves a profit after all costs.
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