Margin and markup describe the same profit from two angles, and confusing them leads to underpricing. Markup is profit as a percent of cost, while margin is profit as a percent of the selling price. A product that costs one hundred dollars and sells for one hundred and fifty carries a fifty percent markup but only a thirty three percent margin. This calculator converts either figure into the other and shows the price your chosen cost produces, so you can quote pricing without second guessing the math. Enter your cost and either a margin or a markup, and the tool fills in the matching value along with the dollar profit per unit. It is handy when a supplier quotes markup but your accounting reports margin, or the other way around. Everything is computed locally in your browser.
Markup is profit divided by cost, margin is profit divided by price. A 50 percent markup equals a 33 percent margin.
Enter one percentage and it returns the other, and it also shows the price built from your cost at that level.
Markup is always the larger number, because it divides profit by the smaller cost base rather than the full price.
Margin and markup describe the same profit from two angles, and confusing them leads to underpricing. Markup is profit as a percent of cost, while margin is profit as a percent of the selling price.
Yes. Margin vs Markup Calculator is completely free, with no sign-up and no usage limits.
Yes. Margin vs Markup Calculator runs in any modern web browser. There is nothing to download or install.
Yes. Margin vs Markup Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.