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Markup vs margin calculator

Turn a cost and a price into margin and markup — or find the price that hits a target margin. It opens on a worked example — change any number. Nothing you enter is saved.

$
$
%

Margin

40%

Markup
66.7%
Price needed for the target margin
$100

The formula

  • Margin = (price − cost) ÷ price × 100
  • Markup = (price − cost) ÷ cost × 100
  • Price for a target margin = cost ÷ (1 − target margin)

How to read it

Margin and markup describe the same profit from different bases, so markup is always the larger number. Mixing them up is a common reason prices come out too low.

Definitions, a full worked example and common pitfalls are in our guide: Gross, Operating and Net Profit Margin Explained.

General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.

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