Margin and Markup Calculator
Convert between margin, markup, cost, and price using standard retail formulas.
Guide
What are margin and markup?
Margin and markup both describe profit relative to price or cost, but they use different denominators. Margin is profit divided by price. Markup is profit divided by cost. This Calculator finds price, profit, margin, and markup from cost plus one other input.
Formula
Profit = Price − Cost. Margin (%) = Profit ÷ Price × 100. Markup (%) = Profit ÷ Cost × 100. From margin: Price = Cost ÷ (1 − Margin ÷ 100). From markup: Price = Cost × (1 + Markup ÷ 100).
Worked example
A cost of 40 with a 25% margin gives price 40 ÷ 0.75 = 53.33. Profit is 13.33. Markup is 13.33 ÷ 40 × 100 = 33.33%.
Assumptions and limitations
The Calculator treats cost, price, margin, and markup as plain numbers without fees, taxes, discounts, or multi-SKU pricing rules. Margin must be less than 100%.
Common questions
Why are margin and markup different?
They use different bases. A 25% margin is not the same as a 25% markup. Can I start from price instead? Yes. Choose the cost and price mode to derive margin and markup from both values. Is margin the same as profit? No. Margin is profit expressed as a percentage of price.
Methodology
The Calculator selects the formula for the chosen mode, computes price and profit at internal precision, then derives margin and markup for display.