What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by selling price. Margin is always lower than markup for positive profit.

How do I calculate selling price from markup?

Selling price = Cost × (1 + Markup%).

Why does a 50% markup equal only 33.33% margin?

Margin uses selling price as the denominator, so it is lower than markup when profit is positive.

Can this handle services and labor?

Yes. Include labor and overhead in your cost input, then apply your target markup or margin.

Pricing Tool

Markup Calculator

Calculate price, profit, markup and margin from cost. Compare markup vs margin and share a clean summary with your team.

Use calculator See features

Calculator

Use the mode that matches your inputs to compute selling price, profit, markup, and margin.

FreeInstantExplainable

Markup is based on cost. Margin is based on selling price. Avoid using them interchangeably.

Cost (USD)

Markup (%)

Results

Selling price

$90.00

Profit

$30.00

Markup

50%

Margin

33.33%

Formula

Price = Cost × (1 + Markup%)

Rounded to 2 decimals.

Markup vs margin conversion

Convert between markup and margin to avoid underpricing mistakes.

Markup (%)

Equivalent margin: 23.08%

Margin (%)

Equivalent markup: 25.00%

Example: 30% markup = 23.08% margin.

Pricing checklist

Make sure your cost input includes everything you need to cover:

Overhead and operating expenses
Payment processing and platform fees
Shipping, packaging, or fulfillment
Warranty, returns, or rework risk

Quick example

Try cost $60 with 50% markup or price $100.

AI insights

Get a pricing sanity check and risk flags based on your inputs.

Avoid sharing personal or sensitive data. AI output is advisory only.

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Why this markup calculator is different

Multi-mode pricing

Switch between cost + markup, cost + price, or cost + margin.

Markup vs margin clarity

Instant conversions so you avoid underpricing mistakes.

Copyable summary

Share inputs, outputs, and formulas in one click.

Optional AI insights

Get quick pricing sanity checks and risk flags.

How it works

Choose a mode

Pick the inputs you already know.

Enter cost and one value

Add cost plus markup, price, or margin.

Use the results

Apply price, profit, and margin in your quote.

FAQ

Price with confidence

Calculate markup and margin in seconds and share a clear summary.

Start calculating

Disclaimer: Results are directional and rounded to 2 decimals. Taxes, fees, and shipping are not included.