What's the difference between markup and margin?

Markup divides profit by cost. Margin divides profit by the selling price (revenue). A $40 profit on a $60 cost item selling for $100 is a 66.7% markup but only a 40% margin.

How do I calculate markup from two known prices?

Use the 'find markup from prices' mode — enter your cost and selling price, and the calculator finds the markup percentage between them.

Markup Calculator

Calculate markup — the percentage added to your cost to set a selling price — or find the markup percentage between two known prices.

Mode

Cost

Markup

Selling Price

$90.00

Profit

$30.00

How It Works

The markup formula

Selling price = cost + (cost × markup percentage). Markup expresses profit as a percentage of cost, not the selling price — this is the key difference from margin.

Example Calculation

An item costing $60 with a 50% markup sells for $90 — a $30 profit, which is 50% of the $60 cost.

Common Mistakes

Confusing markup with margin — the same numbers give different percentages depending on which one you calculate. See the Margin Calculator for the distinction.
Applying markup percentage directly to the selling price instead of the cost.

Frequently Asked Questions

What's the difference between markup and margin?: Markup divides profit by cost. Margin divides profit by the selling price (revenue). A $40 profit on a $60 cost item selling for $100 is a 66.7% markup but only a 40% margin.
How do I calculate markup from two known prices?: Use the 'find markup from prices' mode — enter your cost and selling price, and the calculator finds the markup percentage between them.

Margin CalculatorCalculate profit margin, and the price needed to hit a target margin.