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Markup vs Margin Calculator
Free markup and margin calculator. Enter your cost price and selling price to instantly see your gross profit, markup percentage (profit as a % of cost), and margin percentage (profit as a % of selling price). Clear visual comparison explains the difference.
What you paid for the product or service
What you charge the customer
Enter your cost price and selling price above to compare markup and margin.
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Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit expressed as a percentage of your cost price. Margin is profit expressed as a percentage of your selling price. For the same transaction, markup is always a higher percentage than margin. A 25% markup equals a 20% margin. They measure the same profit from different angles.
Which is better to use: markup or margin?
Neither is universally better. Markup is commonly used when pricing from a cost basis (retail, manufacturing). Margin is preferred when analysing profitability against revenue (finance, accounting). The confusion arises when people mix the two. Use this calculator to see both simultaneously.
If I want a 30% margin, what markup do I need?
To achieve a 30% margin, you need a 42.86% markup. The formula is: markup % = margin % / (1 - margin %). So 0.30 / 0.70 = 0.4286 = 42.86%. Always verify using a calculator like this one before setting prices.
Can markup be higher than 100%?
Yes. A 100% markup means you doubled your cost price. A 200% markup means you tripled it. Margin, however, can never exceed 100% (that would imply you received money for nothing). High-margin businesses like software can have markups in the thousands of percent.
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