Margin vs markup calculator
Margin is profit as a share of the selling price; markup is profit as a share of cost. Enter any two of cost, price, margin or markup — the calculator solves the rest and shows the dollar profit.
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
Cost
For the given price and margin
Margin
Profit ÷ price
Markup
Profit ÷ cost
Dollar margin
Price − cost
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.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price (price − cost) ÷ price, while markup is profit as a share of cost (price − cost) ÷ cost. They are not interchangeable: a 25% markup means selling a $100 cost item at $125, which is a 20% margin — a 25% margin would need a $133.33 price.
How do I convert markup to margin?
Enter any two of cost, price, margin or markup and the calculator solves the rest. For example, buying at $100 and selling at $125 is both a 20% margin and a 25% markup; with the defaults (cost 100, price 125) it shows the dollar margin of $25. Quoting "25% on top of cost" gives a thinner deal than "25% margin" — check which one is meant before agreeing.
Why is 25% margin not equal to 25% markup?
Because the two percentages divide profit by different bases. A 25% margin means profit is a quarter of the selling price, so a $100 cost sells at about $133.33; a 25% markup means profit is a quarter of the cost, so the same cost sells at $125. The tool also flags when three entered values conflict instead of silently dropping one.
Excludes discounts, rebates and landed costs. ICBOMS provides this tool for reference only.