What is the difference between markup and margin?

Markup is the percentage added to cost to get the selling price. Margin is the percentage of the selling price that is profit. A 100% markup = 50% margin.

How is markup calculated?

Markup % = ((Selling Price − Cost) / Cost) × 100. Margin % = ((Selling Price − Cost) / Selling Price) × 100.

Which should I use for pricing?

Both are useful. Markup is easier for cost-plus pricing. Margin is better for comparing profitability across products.

Markup Calculator

Calculate markup percentage, profit margin, and selling price. Convert between markup and margin instantly.

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Markup & Margin Calculator

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Markup (%)

How to use this tool

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