Profit Margin & Markup

Enter cost and selling price to get profit, margin and markup – or enter a target margin to find the price to charge.

I know

Cost

Selling price

Percentage%

Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 50% markup is only a 33% margin – mixing them up is a classic pricing mistake.

Questions

What’s the difference between margin and markup?

Margin = profit ÷ price. Markup = profit ÷ cost. For the same sale, markup is always the bigger number.