Markup to Margin Calculator

Convert between markup and margin percentages. Markup is the percentage increase from cost to selling price, while margin is the percentage of profit relative to selling price.

Input Parameters

Calculation Results

Calculation Results

Markup (%)

0.00%

Margin (%)

0.00%

Profit ($)

0.00

Profit per unit (if 100 units)

0.00

Calculation Formula

Markup = [(Selling Price - Cost) ÷ Cost] × 100%

Margin = [(Selling Price - Cost) ÷ Selling Price] × 100%

Where:
Markup: The percentage increase from cost to selling price
Margin: The percentage of profit relative to selling price
Profit: Selling Price - Cost
Profit per unit: Profit when selling 100 units

Markup to Margin Calculator Calculator Usage Guide

Learn how to use the Markup to Margin Calculator and understand the difference between markup and margin

What is Markup?

Markup is the amount added to the cost price of a product to cover overheads and generate profit. It's calculated as a percentage of the cost.

What is Margin?

Margin is the percentage of the selling price that is profit. It represents how much of the selling price is actual profit after covering the cost.

Key Differences

  • Markup is based on COST
  • Margin is based on SELLING PRICE
  • The same markup percentage will result in different margin percentages depending on the cost

Example Usage

Suppose you buy a product for $50 (cost) and sell it for $75 (selling price):

Markup = (($75 - $50) ÷ $50) × 100% = 50%

Margin = (($75 - $50) ÷ $75) × 100% = 33.33%

This means you have a 50% markup but only a 33.33% margin.

When to Use Each

Use markup when you need to calculate the selling price based on your cost and desired profit percentage. Use margin when you need to understand the profitability relative to your selling price.