Markup vs Margin Calculator
Set a markup on cost and see the selling price and the margin it actually gives you.
Method and limitations · Report an error
Quick answer
Convert markup into selling price and margin
Markup and margin describe the same profit from different starting points. This calculator applies markup to unit cost to find the selling price, then divides profit by that selling price to show the resulting margin.
Use this calculator when
- Setting a price from a required markup on cost
- Checking the margin created by an existing markup rule
- Avoiding the common mistake of treating markup as margin
How to read the result
Because margin uses selling price as its denominator, it is lower than an equal markup percentage. For example, a 40% markup on a cost of 60 produces a price of 84 and a margin of about 28.6%.
- Use a consistent tax basis for cost and selling price
- Include packaging, payment and marketplace costs when they belong in unit cost
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.