Margin & Markup Calculator
Pricing decisions hinge on two ratios that get confused all the time: margin (profit ÷ selling price) and markup (profit ÷ cost). A 50% markup is only a 33% margin — and a 50% margin requires a 100% markup. This calculator lets you fix any two of (cost, selling price, margin %) and solve for the third, so you can quote a price that protects your target margin, audit an existing price's actual margin, or work backwards from a competitor's price to figure out the cost ceiling you'd need to match it. The reference table on the right shows the margin ⇄ markup conversion at common pricing tiers, so you can sanity-check rules-of-thumb (keystone pricing = 50% margin = 100% markup = ×2 price) without re-deriving the algebra each time. Every calculation runs in your browser; no numbers are uploaded.
Selling Price
100
Profit
40
Margin
40.00%
Markup
66.67%
Margin vs Markup
Margin is profit ÷ price; markup is profit ÷ cost. A 50% markup is only a 33% margin. The reference table below makes the conversion explicit.
Margin ⇄ Markup reference
| Margin | Markup | Price × Cost |
|---|---|---|
| 10% | 11.11% | ×1.111 |
| 20% | 25.00% | ×1.250 |
| 25% | 33.33% | ×1.333 |
| 30% | 42.86% | ×1.429 |
| 40% | 66.67% | ×1.667 |
| 50% | 100.00% | ×2.000 |
| 60% | 150.00% | ×2.500 |
| 70% | 233.33% | ×3.333 |
| 80% | 400.00% | ×5.000 |
Runs locally in your browser. No prices or costs are uploaded.
How to use
- Pick a mode — solve for price (when costing out a new product), solve for margin (when auditing an existing price), or solve for cost (when reverse-engineering a price ceiling).
- Enter the two known values in the input fields that appear.
- Read the headline result, plus profit, margin %, and markup % in the breakdown cards below.
- Use the reference table to spot-check the margin-to-markup conversion at common pricing tiers.
Frequently asked questions
- What's the difference between margin and markup?
- Margin is profit as a percentage of the selling price (profit ÷ price). Markup is profit as a percentage of the cost (profit ÷ cost). They describe the same profit dollars from two different denominators, so the numbers are always different — a 25% margin equals a 33.3% markup; a 50% margin equals a 100% markup.
- Can the margin go above 100%?
- No. Since margin = profit ÷ price and profit ≤ price (you can't earn more than the customer pays), margin is mathematically capped at 100%. Markup, on the other hand, has no upper limit — a $1 item sold for $100 has a 9,900% markup but a 99% margin.
- Which one should I quote to clients or buyers?
- Wholesale and retail typically quote markup ("a 40% markup on cost"). Investors, finance teams, and SaaS reports quote margin ("gross margin of 70%"). When in doubt, ask which denominator: cost or revenue.
- What's keystone pricing?
- Doubling the cost — a ×2 multiplier, which is a 100% markup and a 50% margin. It's the traditional retail rule of thumb that bakes in roughly enough room for overhead, shrinkage, and clearance markdowns while still leaving a profit.
- How does this differ from the Discount Calculator?
- Discount Calculator is buyer-side — given a listed price and a percent off, what do I actually pay? Margin Calculator is seller-side — given a cost, what price covers my overhead and profit target? Different problem, different math.
Related tools
Electricity Cost Calculator
Estimate what any appliance costs to run — enter its wattage, hours per day and your rate per kWh to get daily, weekly, monthly and yearly energy and cost.
Fuel Cost Calculator
Estimate the fuel cost of a trip from the distance, your vehicle's fuel economy and the fuel price — in metric (L/100km) or US (mpg), with an optional round trip.
Unit Price Comparator
Compare grocery and shopping items by price-per-unit (price per gram, mL, or piece). Mass, volume, and count groups with imperial and metric units.
Percentage Calculator
Work out percentages, what-percent, and percent change in one place.
Tip Calculator
Calculate the tip and split the total bill between people.
Tile Calculator
Work out how many floor or wall tiles you need for a room — from its length and width and the tile size, with an adjustable waste allowance and boxes required.