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