Free Markup vs Margin Calculator

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. The same pound profit can mean different markup and margin percentages, which is why pricing conversations often mix the two.

How this calculator works

1. Enter your cost: Add the cost to produce or buy one unit before any profit is added.
2. Choose markup or margin mode: Markup mode adds a percentage on top of cost. Margin mode sets profit as a percentage of the final selling price.
3. Enter your target percentage: In markup mode, enter the markup percentage. In margin mode, enter the margin percentage (must be below 100%).
4. Calculate selling price: Markup mode multiplies cost by (1 + markup ÷ 100). Margin mode divides cost by (1 − margin ÷ 100).
5. See both percentages: The result shows selling price, profit, and the equivalent markup and margin so you can compare both views.

Markup and margin price formulas

Markup adds profit on top of cost. Margin works backward from the selling price, so a 25% margin price is higher than a 25% markup on the same cost.

Worked example

Your cost is £40. With 50% markup, selling price is £40 × 1.5 = £60 (profit £20, margin 33.33%). With 25% margin instead, selling price is £40 ÷ 0.75 = £53.33 (profit £13.33, markup 33.33%).

When to use this calculator

Use it when a supplier quotes markup but your target is margin, when setting retail prices, or when checking that a discount still leaves enough profit.