Calculate 3 Modes
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What Is the Difference Between Markup and Margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. Buy something for $70 and sell it for $100, and the $30 profit is a 42.86% markup but only a 30% margin. Markup is always the bigger number, so confusing the two means pricing too low.
How to Use the Calculator
- Pick a mode: cost and price, target margin or target markup.
- Enter your cost and the second value (a selling price or a percentage).
- Read the selling price, profit, markup and margin together.
Markup and Margin Formulas
- Profit = selling price − cost
- Markup % = profit ÷ cost × 100
- Margin % = profit ÷ selling price × 100
- Price for a target margin = cost ÷ (1 − margin). A 30% margin on $70 cost needs $70 ÷ 0.70 = $100.
- Price for a target markup = cost × (1 + markup). A 30% markup on $70 gives $91.
Margin to Markup Conversion Chart
| Margin | Equivalent markup |
|---|---|
| 10% | 11.11% |
| 15% | 17.65% |
| 20% | 25% |
| 25% | 33.33% |
| 30% | 42.86% |
| 40% | 66.67% |
| 50% | 100% |
| 60% | 150% |
| 75% | 300% |
Markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup). A 100% markup (doubling the cost, or "keystone" pricing) is only a 50% margin.
The Most Common Pricing Mistake
You want a 30% margin, so you add 30% to cost: $70 × 1.30 = $91. But $21 profit on a $91 sale is only a 23.1% margin. To actually earn 30% of the price, you need to sell at $100. Use the target-margin mode whenever your goal is stated as margin, as most business plans and accountants state it.
Markup or Margin: Which Should You Use?
- Markup is handy when setting prices from cost, as retailers and manufacturers often do.
- Margin is what financial statements and profitability comparisons use, because it's based on revenue.
Put your prices on a bill with the free invoice generator, check discounts with the discount calculator, or see how much prices have changed with the percentage change calculator.
Who Uses the Markup & Margin Calculator?
- Retailers and resellers: set a selling price that gives the margin you need.
- Freelancers: add a markup to costs when quoting a job.
- Reading supplier terms: convert a quoted markup to a margin to compare offers.
How the Markup & Margin Calculator Saves You Time
Converting between markup and margin needs a formula people often get backwards. Enter a cost and a price, or a target percentage, and the calculator gives both figures together.
Frequently Asked Questions
What is the difference between markup and margin?
How do I convert margin to markup?
How do I calculate selling price from cost and margin?
Is a 50% markup the same as a 50% margin?
What is a good profit margin?
Can margin be more than 100%?
Last updated: September 2026