Markup vs Margin Calculator
Compare markup percentage against profit margin.
Enter your values
ⓘ Live results
Results
- Markup
- 50%
- Margin
- 33.33%
- Profit per unit
- $20
- Selling price
- $60
Quick answer
Markup is profit divided by cost, while margin is profit divided by selling price — they are never the same number.
markup = (price - cost) / cost; margin = (price - cost) / price
How to use the Markup vs Margin Calculator
- 1Enter what the item costs you.
- 2Enter what you sell it for.
- 3Compare markup and margin — they diverge more as the profit percentage grows.
Worked example
Using the values the calculator loads with:
Inputs
- Unit cost40 $
- Selling price60 $
Results
- Markup50%
- Margin33.33%
- Profit per unit$20
- Selling price$60
Frequently asked questions
Why are markup and margin different?
Markup divides profit by cost; margin divides the same profit by the higher selling price, so margin is always smaller.
Which should I use for pricing?
Markup is easier for pricing from cost; margin is what shows up in your P&L.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.