Markup Calculator
Free Markup Calculator for number theory. Enter values to get step-by-step solutions with formulas and graphs. Includes formulas and worked examples.
Reviewed by Sahil, Senior Finance & Tax Editor
Formula
Markup % = ((Selling Price - Cost) / Cost) × 100 | Margin % = ((Selling Price - Cost) / Selling Price) × 100
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. They are related but different measures.
Worked Examples
Example 1: Retail product
Problem:Cost $50, sell $75
Solution:Markup=(75-50)/50×100=50%, Margin=(75-50)/75×100=33.3%
Result:50% markup, 33.3% margin
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost to get the selling price: Markup = (Price - Cost) / Cost. Margin is the percentage of the selling price that is profit: Margin = (Price - Cost) / Price. A 50% markup on a 10 dollar item sets the price at 15 dollars, but the margin is 33.3%. Margin is always lower than markup for the same product.
Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy