Markup & Margin Calculator
Price products correctly with clear profit math.
Markup & Margin Calculator
Selling Price = Cost x (1 + Markup / 100); Margin = Profit / Selling Price x 100
Calculated instantly
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What This Calculator Does
The Markup & Margin Calculator converts your cost into a selling price using markup percentage, then reveals the true profit margin. Retailers and freelancers use it to avoid the classic trap of confusing markup with margin.
How It Works
Markup is added on top of cost: selling price = cost x (1 + markup / 100). Margin measures profit against the selling price instead: margin = profit / selling price x 100. Because the two use different bases, a 50% markup equals only a 33.3% margin.
Example
A product costs R40. At a 50% markup the selling price is R60, profit is R20, and the margin is 20 / 60 = 33.3%.
Formula
Price = Cost × (1 + Markup / 100)Margin = Profit / Selling Price × 100Margin is measured against selling price, not cost.
Reading the Results
Selling Price
The price a customer pays, built from cost plus the markup percentage applied to that cost.
Profit Margin
Profit expressed as a share of the selling price. It is always smaller than the markup for the same sale.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit divided by cost; margin is profit divided by selling price. They are different numbers for the same sale.
What markup gives a 40% margin?
Use markup = margin / (1 - margin) = 0.4 / 0.6 = 66.7%. The calculator can check this by entering cost and markup together.
Is margin before or after taxes?
This calculator reports gross margin before taxes and overhead. Net margin would subtract operating expenses as well.