Margin & Markup Calculator
Calculate profit margin and markup from cost and revenue.
Inputs
Output
Fill in both fields to see margin and markup.
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About Margin & Markup Calculator
The Margin & Markup Calculator shows the profit on a sale and expresses it two ways: margin, as a share of the selling price, and markup, as a share of the cost. Retailers, resellers and freelancers use it to price products and check that they are profitable.
How to use it
- Enter the cost of the item or service.
- Enter the revenue, meaning the selling price.
- Read the profit, the margin percentage and the markup percentage.
Good to know
- Margin is profit divided by revenue. Markup is profit divided by cost.
- For a cost of 60 and a price of 100, the profit is 40, the margin is 40% and the markup is about 66.7%.
- Margin can never reach 100%, while markup can be any size. Mixing the two up is a common pricing mistake.
Common questions
Which should I use for pricing, margin or markup?
Either works as long as you are consistent. Many businesses set prices using markup on cost and report performance using margin on revenue.
Why is my margin lower than my markup?
Revenue is always larger than cost when you make a profit, so dividing the same profit by revenue gives a smaller percentage.