Markup vs Margin Calculator
See markup and margin for the same cost and price side by side, and the price you need to charge to hit a target margin.
- Free
- No sign-up to try
- Works as you type
Markup and margin
Profit per unit
$24.00
Markup (on cost)
60.0%
Margin (on price)
37.5%
Price for the target margin
$80.00
- Markup = (price − cost) ÷ cost × 100.
- Margin = (price − cost) ÷ price × 100.
- Price for a target margin = cost ÷ (1 − target margin).
- To convert: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin).
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Markup vs Margin Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Cost per unit
- $40
- Selling price
- $64
- Target margin
- 50 %
Results
- Profit per unit
- $24.00
- Markup (on cost)
- 60.0%
- Margin (on price)
- 37.5%
- Price for the target margin
- $80.00
How it's calculated
- Markup = (price − cost) ÷ cost × 100.
- Margin = (price − cost) ÷ price × 100.
- Price for a target margin = cost ÷ (1 − target margin).
- To convert: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin).
- Assumes: Cost is everything it takes to sell one unit that you want the margin to cover.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Retailers
Price stock without mixing up markup and margin.
Wholesalers
Check what a markup means as a margin for your buyer.
Students
Check markup and margin homework with the method.
Good to know
What to consider
- Cost should include everything you want the margin to cover for one unit.
Questions
About the Markup vs Margin Calculator
What's the difference between markup and margin?
Markup is profit as a share of cost; margin is profit as a share of price. A $40 item sold at $64 has a 60% markup but a 37.5% margin.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
Create my calculatorRelated
Related tools
- Profit Margin CalculatorWork out gross margin, net profit and net margin from revenue and costs.
- Discount Impact CalculatorFind out how many more units you need to sell after a discount to make the same gross profit, and what you lose if sales don't rise.
- Break-Even CalculatorFind how many units you need to sell to cover your fixed costs, and the revenue that takes.