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Markup & Margin Calculator

Price from your cost — by markup or by the margin you want to keep — and see both.

Price by
$
%

Profit as a % of cost.

Selling price

$75.00

$25.00 profit

Cost$50.00
Profit$25.00
Markup50%
Margin33.3%

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Markup and margin are not the same number

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup is only a 33% margin. Confusing the two is one of the most common pricing mistakes — it quietly erodes profit on every sale.

Enter your cost and either the markup you want to apply or the margin you want to hit. The calculator returns the price, the profit, and both percentages so you always know which lens you are using.

Pricing from target margin

If you know the margin you need to stay profitable, work backwards: price = cost ÷ (1 − margin). This guarantees the margin regardless of cost, which is safer than tacking on a flat markup and hoping it is enough.

Frequently asked questions

What is the difference between markup and margin?
Markup measures profit against cost; margin measures profit against the selling price. The same profit gives a higher markup percentage than margin percentage.
Is a higher markup always better?
Not necessarily — price too high for your market and you lose sales. Use markup to cover costs and target profit, then sanity-check the price against what customers will actually pay.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). For example, a 25% markup equals a 20% margin. The calculator shows both at once so you never have to convert by hand.
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Last updated 2026-06-02.