Markup Calculator
Enter your cost and selling price to see both the markup percentage and the profit margin side by side.
Markup and Margin Breakdown
How to Use This Calculator
Type in what you paid for a product or service under "Cost" and the price you charge customers under "Selling Price." The calculator will show you both the markup percentage and the profit margin at the same time. It also shows your dollar profit per unit and the multiplier you applied to your cost.
If your cost is $40 and you sell at $60, your markup is 50% (you added $20 on top of $40) while your margin is 33.33% ($20 profit out of the $60 selling price). Most people mix these two up, and the difference matters when you set prices.
Why Markup and Margin Are Not the Same Thing
Markup tells you how much you added to your cost. Margin tells you how much of the final price is profit. They always use different base numbers. Markup divides profit by cost. Margin divides profit by the selling price. Because the selling price is always larger than cost, the margin percentage is always lower than the markup percentage for the same transaction.
This matters in real business decisions. When a supplier says "we offer 40% margins" and you think they mean 40% markup, you could end up making less money than expected. Getting these numbers right keeps your pricing solid and your forecasts honest.
A quick reference: 25% markup gives you a 20% margin. 50% markup gives you 33.3% margin. 100% markup gives you 50% margin. The gap between the two numbers gets wider as the percentages go up.
Note: This tool provides calculations for informational purposes only. It is not financial advice. Pricing decisions should account for your full cost structure, market conditions, and business strategy. Consult an accountant for tax and financial planning questions.