Markup and Margin Calculator
Markup and margin both describe the gap between what an item costs you and what you sell it for, but they divide that gap by different numbers. Markup divides it by cost; margin divides it by the selling price. A 50% markup is only a 33.3% margin. Use the calculator to get the selling price for a target margin, see the margin and markup of a price you already charge, or convert one percentage into the other. The starting values are examples only.
Enter your numbers
The starting values are examples. Calculations stay in your browser.
Check a price you already charge
Convert a markup to a margin
Gross profit is before overhead, owner pay and taxes. These are planning numbers from your inputs, not pricing advice.
How the calculation works
- Gross profit per unit = selling price − cost per unit.
- Markup % = gross profit ÷ cost × 100.
- Margin % = gross profit ÷ selling price × 100.
- Price for a target margin = cost ÷ (1 − margin % ÷ 100).
- Price for a target markup = cost × (1 + markup % ÷ 100).
- Markup to margin: margin = markup ÷ (1 + markup). Margin to markup: markup = margin ÷ (1 − margin), with both as decimals.
The result is a planning scenario from the numbers you enter. It is not a forecast, a quote or tax advice.
Questions
What is the difference between markup and margin?
Both use the same gross profit, the selling price minus your cost. Markup expresses that profit as a percentage of cost; margin expresses it as a percentage of the selling price. Because the price is always larger than the cost when you make a profit, the margin percentage is always smaller than the markup percentage for the same item.
What margin does a 100% markup give?
A 100% markup doubles the cost, so an item that costs $10 sells for $20. The $10 profit is 50% of the $20 price, so the margin is 50%.
Why can a margin never reach 100%?
A 100% margin would mean the whole selling price is profit, so the item cost nothing. Any real cost keeps the margin below 100%, while markup has no upper limit.
Should I include overhead in the cost?
This calculator works on the cost of the item itself: materials, the purchase price or direct labor for one unit. Rent, software and other monthly costs are covered by the gross profit across all sales. Use the break-even calculator to see how many sales at this margin cover those fixed costs.
Can I put this calculator on my website?
Yes. Copy the embed code on this page. The embedded version keeps a small credit link to BizAI.
Embed this calculator
Add this free calculator to your blog, course or client resources. Paste the code into an HTML block. It is free to use and keeps a small credit link to BizAI.
Use it with a real business idea
Each of our business idea guides loads this kind of calculator with an example budget and price for that business. Other free tools: Small Business Profit CalculatorBreak-Even Calculator.