Markup vs Margin Calculator
Set a markup on cost and see the selling price and the margin it actually gives you.
Method
How it works
Apply a markup percentage to unit cost to calculate the selling price. Profit per unit is the difference between that price and the cost.
The resulting margin is then measured against the selling price, not the original cost. A 40% markup therefore produces a lower percentage margin.
Common questions
Frequently asked questions
Why is a 40% markup not a 40% margin?
Markup uses cost as the denominator, while margin uses the higher selling price.
Can I enter a negative markup?
Yes. A negative value models a selling price below cost and produces a loss per unit.
Does the selling price include tax?
Only if the unit cost you enter and the pricing basis you intend both include it.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.