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Enter either a markup or a margin percentage.
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Markup is profit divided by cost, expressed as a percentage. Margin is profit divided by sale price, expressed as a percentage. The two figures coincide only when sale price equals cost (both zero); for any positive profit, markup is the larger one.
Markup vs Margin
From markup m to margin, margin = m divided by (1 + m). From margin g to markup, markup = g divided by (1 − g). Both formulas assume a single product cost and a single selling price — they break down if either has range or tiers.
Markup vs Margin
Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.
Markup vs Margin
Use the metric that matches the decision and reporting policy. Margin is profit relative to selling price; markup is profit relative to cost. Keep the labels explicit so the two percentages are not compared as though they were the same measure.
Markup vs Margin
Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.
