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Markup & Margin Calculator

Price products correctly by converting between cost, sell price, markup percentage (on cost), and profit margin percentage (on sell). Essential for retail, wholesale, and freelance pricing.

Understanding markup / margin

Markup and margin both describe profit, but they divide by different bases. Confusing them is one of the costliest pricing mistakes in retail and freelancing.

Good for

  • Setting sell prices from cost and a target markup or margin
  • Auditing whether a quoted “margin” was actually markup
  • Teaching finance vocabulary with live numbers

Try the calculator

Markup & Margin Calculator

Convert between cost, sell price, markup %, and profit margin %

Mode

$
%

Result

$70.00

Markup $20.00 · Margin 28.57%

Sell = cost × (1 + markup%/100) = 50.00 × (1 + 40/100)

Price products correctly by converting between cost, sell price, markup percentage (on cost), and profit margin percentage (on sell). Essential for retail, wholesale, and freelance pricing. Read related guides.

Definitions that stay distinct

Markup % = profit ÷ cost × 100. Margin % = profit ÷ selling price × 100. With cost $40 and sell $60, profit is $20: markup is 50%, margin is about 33.3%. Same dollars, different percentages.

If a stakeholder says “we need 40%,” ask “markup or margin?” Before you change a price list.

Pricing from a target

From markup: sell = cost × (1 + markup/100). From margin: sell = cost ÷ (1 − margin/100). A 40% margin on $50 cost needs about $83.33 sell — far from a 40% markup ($70).

When to open the guide

Our markup vs margin guide walks through more examples. Use this calculator when you have numbers in hand and need conversions quickly for quotes or spreadsheet checks.

Worked examples

Example calculations for Markup / Margin
QuestionAnswer
Cost $50 with 40% markupSell $70 · Margin ~28.57%
Cost $50 with 40% marginSell $83.33 · Markup ~66.67%
Cost $80 sell $100Markup 25% · Margin 20%

Formula reference

GoalFormula
Sell from markupcost × (1 + markup%/100)
Sell from margincost ÷ (1 − margin%/100)
Margin %(sell − cost) ÷ sell × 100
Markup %(sell − cost) ÷ cost × 100

FAQ — Markup / Margin

What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by sell price. A 50% markup on $100 cost is $150 sell (33.3% margin). They are not the same percentage.
How do I calculate sell price from margin?
Sell price = cost ÷ (1 − margin%/100). For a 40% margin on $50 cost: 50 ÷ 0.6 ≈ $83.33.

Educational tool only — not tax, legal, or financial advice. Contact us with corrections.

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