Convert between markup percentage and profit margin percentage, and find the selling price from cost using either pricing method.
Overview
The Markup vs Margin Calculator converts between markup percentage and profit margin percentage, and derives the selling price from cost using either pricing method. It helps retailers, wholesalers, ecommerce sellers, and service businesses avoid the common mistake of treating markup and margin as the same thing.
Common Use Cases
Pricing products and services
Markup to margin conversion
Margin to markup conversion
Retail pricing strategy
Wholesale price setting
Ecommerce margin planning
Quotation preparation
Discount impact analysis
Cost-plus pricing
Competitive pricing review
Profit planning
Freelance service pricing
How to Use
1
Enter the unit cost.
2
Set a markup percentage to see the resulting selling price and equivalent margin.
3
Set a target margin percentage to see the selling price and equivalent markup.
4
Compare both pricing methods for the same cost.
5
Use the results to set consistent pricing targets.
Example Scenario
Retail Pricing Check
A retailer knows product costs and wants to compare a 50% markup against a 33% margin. The calculator converts each method so pricing decisions are consistent.
Technical Notes
Markup is profit expressed as a percentage of cost.
Margin is profit expressed as a percentage of the selling price.
Selling price from markup equals cost multiplied by 1 plus the markup percentage.
Selling price from margin equals cost divided by 1 minus the margin percentage.
The same price yields a numerically higher markup than margin because each is based on a different denominator.
Margin must stay below 100% because profit cannot exceed the selling price.
Common Mistakes
Treating markup and margin as identical
Pricing with markup while tracking targets in margin
Entering margin values at or above 100%
Forgetting to include all unit costs
Comparing prices without a common base
Ignoring tax and discount effects
Frequently Asked Questions
Markup is profit relative to cost, while margin is profit relative to the selling price. For example, a 50% markup on a 100 cost gives a 33.3% margin.
Margin is usually better for tracking profitability, while markup is simpler for quick cost-plus pricing. Use this tool to move between the two.
Because they use different denominators: markup divides profit by cost, margin divides profit by the selling price.
No. A 100% margin would require zero cost, so margin values must stay below 100%.