Gross profit
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Markup & Margin Calculator
Price a product from what it costs you — set the price by a markup on cost or by a target margin on the selling price — and see both at once.
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recommended selling price
Margin
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Markup
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Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup equals roughly a 33% margin.
Markup vs margin — don't confuse them
A $20 cost with 50% markup prices at $30 and earns $10. That $10 is 33% of the $30 selling price, so your margin is 33%. If instead you want a 50% margin, price at $40 (cost ÷ 0.5). Feed the numbers through the mode switch to see it live.
How markup and margin differ
Markup = (Price minus Cost) divided by Cost. Margin = (Price minus Cost) divided by Price. A 100% markup gives 50% margin. They are NOT interchangeable — markup is always higher than margin.
Frequently asked questions
How do I compute margin from markup?
margin = markup ÷ (1 + markup). For markup m as a decimal, margin = m/(1+m). A 25% markup → 20% margin.
How do I compute markup from margin?
markup = margin ÷ (1 − margin). For a 40% margin, markup = 0.40/0.60 ≈ 67%.
Last updated — rates and figures change over time, so always confirm with the current source.
Figures are estimates for general information, not financial advice — see our disclaimer.