Margin Calculator

Solve margin and markup from cost and price, in either direction. Markup stays on this page.

Smart Tips

• Margin and markup use the same profit and different denominators. 37.5% margin is 60% markup on a $50 cost and an $80 price.

• Switch the mode to start from cost and markup, or from price and margin. You do not need another page.

• A price below cost is a negative margin and a negative markup. That is allowed when both amounts stay above zero.

• A margin of 100% would require a cost of zero. The page rejects it instead of dividing by zero.

The Formula

Margin = (price − cost) ÷ price

Markup (price − cost) ÷ cost
Same profit, divided by cost

Price cost ÷ (1 − margin)
Also cost × (1 + markup)

Cost price × (1 − margin)
Also price ÷ (1 + markup)

Profit price − cost
Shown when you enter both amounts

A $50 cost and an $80 price produce $30 of profit, a 37.5% margin, and a 60% markup. No price list is stored. The two ratios are the definitions used on this page.

Key Insights

One page for both

Markup is a mode in the first menu. It is not a second address.

Price is the margin base

A larger price makes the margin percent smaller than the markup percent, for the same profit.

Cost is the markup base

Doubling a $50 cost with a 100% markup is a $100 price, which is only a 50% margin.

Zero cost has no markup

Markup divides by cost. A zero cost is rejected.

The same $50 cost and $80 price

Measure	Result
Profit	$30
Margin	30 ÷ 80 = 37.5%
Markup	30 ÷ 50 = 60%
Price from a 60% markup	50 × 1.60 = $80
Cost from a 37.5% margin	80 × (1 − 0.375) = $50

Frequently Asked Questions

Margin divides profit by the price. Markup divides profit by the cost. On a $50 cost and an $80 price, profit is $30, margin is 37.5%, and markup is 60%.

It answers the same pair of questions in the other direction. Choose cost and markup, or price and markup, in the mode menu. There is no separate markup address.

Divide the cost by 1 minus the margin. A $50 cost and a 37.5% margin give 50 ÷ 0.625 = $80. A margin of 100% or more is rejected.

Yes, if the price and the cost are both above zero. The margin and the markup are then negative. A markup of −100% would make the price zero, so it is rejected.

No. Cost is the number you type. Rent, labor, tax, and a discount are included only if you have already put them into that cost or price. This is an estimate of the ratio, not pricing advice.

Margin is (price − cost) ÷ price. Markup is (price − cost) ÷ cost. No price list or rate table is used. The worked example on this page is a $50 cost and an $80 price: $30 of profit, 37.5% margin, and 60% markup. Source: Investopedia margin vs markup: https://www.investopedia.com/ask/answers/102714/what-difference-between-margin-and-markup.asp.

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Result

Enter values to calculate

Margin

Markup

Note:This is an estimate of the arithmetic, not pricing advice. It ignores shipping, tax, discounts, and overhead. A selling price at or below zero, a margin of 100% or more, and a markup of −100% or worse are rejected because the ratio is no longer defined.