Toolstia / markup calculator
Markup calculator
Markup and margin are often confused. Enter any two values and this calculator gives you the selling price, the profit, the markup on cost and the margin on price.
Markup is profit as a share of cost. Margin is profit as a share of the selling price. A 25% markup is only a 20% margin.
How it works
- Choose what you know.
- Enter the two values.
- Read the price, profit, markup and margin.
Markup
Markup is profit divided by cost. A product that costs 80 and sells for 100 has a markup of 25 percent.
Margin
Margin is profit divided by the selling price. The same product has a margin of 20 percent.
Why they differ
Markup is always a bigger number than margin for the same sale, because it divides by the smaller cost.
Pricing tip
If you want a 30 percent margin, a 30 percent markup is not enough. You need about a 43 percent markup.
Questions
Which should I use to set prices?
Many shops use markup to set a price from cost. Margin shows how much of each sale you keep as profit.
Can the margin be 100 percent?
No. Margin must be below 100 percent, because cost is above zero.
Is anything uploaded?
Everything is worked out in your browser, and nothing you type is sent anywhere.