What is the difference between margin and markup?

Margin is profit as % of revenue (selling price). Markup is profit as % of cost. So a 50% margin means profit is half of revenue; 50% markup means you add half of cost to get price.

How do I find selling price from cost and margin?

Selling price = Cost / (1 ' Margin/100). Example: cost $60, 40% margin ' Price = 60/0.60 = $100.

Profit Margin Calculator

Calculate profit margin and markup from your cost and selling price. You can also estimate the selling price needed to hit a target margin.

Calculate margin and markup

Cost

Selling price (revenue per unit)

Enter revenue and cost for margin.

How it works

What this result means

Margin % is profit as a share of revenue — the number buyers and investors focus on. Markup % is profit as a share of cost — the number used when pricing from cost up. Both describe the same profit gap in different terms.

Formula:

Profit = Revenue − Cost

Where:
Margin % = (Profit ÷ Revenue) × 100
Markup % = (Profit ÷ Cost) × 100
Revenue = selling price Cost = cost of goods

Enter your cost and selling price
Profit = selling price minus cost
Margin divides profit by the selling price
Markup divides profit by cost — always higher than margin for the same deal

Example

Cost $60, price $100: Profit = $40. Margin = 40 ÷ 100 × 100 = 40%. Markup = 40 ÷ 60 × 100 = 66.7%.

Use this tool for

Setting prices for products or services
Checking whether a sale leaves enough profit
Comparing margin and markup side by side

Common questions

What is the difference between margin and markup? Margin is profit as % of revenue (selling price). Markup is profit as % of cost. So a 50% margin means profit is half of revenue; 50% markup means you add half of cost to get price.
How do I find selling price from cost and margin? Selling price = Cost / (1 ' Margin/100). Example: cost $60, 40% margin ' Price = 60/0.60 = $100.