Profit & Margin
Markup Calculator
Price from cost with markup, and convert between markup and margin.
Markup Calculator
All math runs locally in your browser. Nothing is uploaded.
How it works
Markup is how much you add to cost when setting a price: a $50 item sold at $75 carries a 50% markup. It is the natural language of cost-plus pricing, common in retail and contracting.
The trap is confusing markup with margin. A 50% markup is a 33% margin, because margin divides the same profit by the larger revenue base. The conversion section on this page settles that question with one number.
Formula
Markup = (Price − Cost) / Cost
Margin = Markup / (1 + Markup), and the reverse: Markup = Margin / (1 − Margin).
Worked example
Example: an item costs $50 and sells for $75. Profit = $25. Markup = 25 / 50 = 50%. Margin = 25 / 75 = 33.3%. Same deal, two numbers — the conversion tool moves between them.
WORKED EXAMPLE — DEFAULT INPUTS
What to know
Retailers often start from a desired margin and work back to a price: divide the cost by (1 minus the target margin). A 40% target margin means pricing at cost divided by 0.60, which is a 66.7% markup — the two views must agree.
Wholesalers and manufacturers usually think in markup, retailers in margin, and the difference causes repeated friction in negotiations. Converting both ways before the conversation starts keeps the deal numbers honest on both sides.
Markup vs Margin Converter
Enter a markup and read the equivalent margin, or enter a margin and read the equivalent markup. One conversion settles the pricing conversation: if a client asks for a 40% margin, the price must carry a 66.7% markup over cost.
Markup vs Margin Converter
All math runs locally in your browser. Nothing is uploaded.
FAQ
Markup vs margin, what is the difference?
Markup divides profit by cost; margin divides it by price. Because price exceeds cost, the margin number is always lower than the markup number for the same deal.
How do I convert a 25% margin to markup?
Markup = 25 / (100 − 25) = 33.3%. A price with a 33.3% markup has a 25% margin.
Which one should I quote in my business plan?
Margins, because investors and lenders think in margin terms. Markup is fine for internal cost-plus pricing conversations.
Does a bigger markup always mean more profit?
Only if volume holds. Higher prices can reduce units sold, so the optimal markup balances margin per unit against volume.