Margin vs Markup Calculator
Margin and markup measure profitability differently — and people often mix them up. Enter your cost and either margin or markup; the calculator shows the selling price, profit, and the equivalent figure under the other definition.
How is this calculated?
Markup = (selling price − cost) / cost × 100 — measures profit as a percentage of cost. Margin = (selling price − cost) / selling price × 100 — measures profit as a percentage of the sale. Selling price from markup: cost × (1 + markup/100). Selling price from margin: cost / (1 − margin/100).
Frequently Asked Questions
What's the difference between margin and markup?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A €100 cost sold for €150 has a 50% markup but a 33.3% margin. Both describe the same transaction; they just use different denominators.
Which should I use, margin or markup?
Retail and wholesale typically quote markup (because cost is the obvious starting point). Profit-focused analysis usually quotes margin (because revenue is the natural denominator). Pick whichever your team understands and stick with it consistently.
Why does my 30% markup give a smaller margin?
Margin is always smaller than markup for any positive markup. A 30% markup yields a 23.1% margin (30 ÷ 130). A 50% markup gives a 33.3% margin. A 100% markup gives a 50% margin. They converge only at 0%.
Can margin be 100%?
Mathematically only if cost is zero (effectively all profit). In practice, software, digital products, and licensing can approach very high margins (90%+) because the marginal cost per sale is negligible. Physical goods rarely exceed 80% margin.
How do I price a product to hit a 40% margin?
Use selling price = cost / (1 − margin/100). For 40% margin on a €60 cost: 60 / (1 − 0.40) = €100. Always check market prices — your target margin only works if customers will pay it.
Last updated: May 2026 · Rates sourced from Revenue