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.