Margin Markup Calculator Online - Profit Margin & Markup %
Difference
- Margin is profit as a percentage of revenue.
- Markup is profit as a percentage of cost.
About Margin & Markup Calculator
Calculate both gross profit margin and markup percentage with our free online calculator. Understand the critical difference between margin and markup - two essential pricing metrics for any business. Enter your cost and selling price to instantly see your profit, margin %, and markup %.
How to Use This Tool
Enter Cost
Input the cost to produce or acquire the product, including all expenses.
Enter Revenue (Selling Price)
Input the price at which you sell the product to customers.
View Results
See your gross margin (profit/revenue), markup (profit/cost), and absolute profit amount.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of Selling Price: Margin = (Profit/SP) × 100. Markup is profit as a percentage of Cost Price: Markup = (Profit/CP) × 100. Same profit, different percentages!
How do I calculate margin from markup?
Margin = Markup / (1 + Markup). For example, 50% markup = 0.50 / (1 + 0.50) = 0.50 / 1.50 = 33.33% margin.
How do I calculate markup from margin?
Markup = Margin / (1 - Margin). For example, 25% margin = 0.25 / (1 - 0.25) = 0.25 / 0.75 = 33.33% markup.
Which is more commonly used - margin or markup?
Margin is used for financial reporting and profitability analysis. Markup is used for pricing products. Most retailers use markup to set prices, but report profitability using margin.
Key Features
- •Calculate Gross Profit Margin
- •Calculate Markup Percentage
- •Clear Margin vs Markup Comparison
- •Multi-Currency Support
- •Instant Real-time Calculation
- •Essential for Pricing Strategy
Why Margin & Markup Calculator Matters
Understanding the difference between margin and markup is crucial for pricing products correctly. Use margin for financial analysis and reporting. Use markup when setting prices from cost. Our calculator shows both metrics side-by-side so you can make informed pricing decisions.