Margin and Markup Calculator
Calculating…
Margin versus markup
Both describe the same profit, measured against different things. Margin is profit divided by the selling price. Markup is profit divided by cost.
With a cost of $60 and a price of $100, profit is $40: the margin is 40% and the markup is 66.67%.
Common mistake
A 50% markup is not a 50% margin. A product that costs $100 and sells for $150 has a 50% markup but only a 33.3% margin.
Price from a target margin
To hit a target margin, divide the cost by (1 − margin). For a 40% margin on a $60 cost: $60 ÷ 0.60 = $100.