Margin vs markup calculator

Interactive engineering and procurement calculator. Instant client-side computation with no sign-up.

Cost & price

Margin & markup

Fill in any two of cost, price, margin or markup — the calculator derives the rest. If you fill three that disagree, it flags the conflict instead of silently dropping one.

Result

Selling price

For the given cost and margin/markup

125

Cost

For the given price and margin

100

Margin

Profit ÷ price

20 %

Markup

Profit ÷ cost

25 %

Dollar margin

Price − cost

25

Why the two are not the same

A 25 % margin means profit is a quarter of the selling price; a 25 % markup means profit is a quarter of the cost. Buying at 75 and selling at 100 is both 25 % margin and 33.3 % markup — selling at 125 on a cost of 100 is 20 % margin and 25 % markup. Quoting “25 % on top of cost” gives a thinner deal than “25 % margin” — check which one is meant before agreeing.

Sourcing at better prices? Try the price break calculator to see whether a higher quantity tier is cheaper than your exact order.

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