Business ToolsProfitability ToolsFree Tool
Margin vs Markup Calculator
Enter your cost and selling price to see both the markup percentage (profit ÷ cost) and margin percentage (profit ÷ price) side by side, so you stop confusing the two.
How to Use Margin vs Markup Calculator
- 1Enter your cost
- 2Enter your selling price
- 3Click Calculate to see both markup % (on cost) and margin % (on price)
- 4Compare the two to understand how much lower margin is than markup for the same sale
Frequently Asked Questions
Both measure the same rupee profit, but markup divides it by cost while margin divides it by selling price. Since selling price is always higher than cost (when profitable), margin is always the smaller percentage of the two.
Profit Margin Calculator reports only margin % (and rupee profit) from revenue and cost. This tool computes BOTH markup % and margin % from the same cost/price pair, specifically to compare them side by side.
This calculator works from cost and price, not from a target percentage directly — enter a price, check the resulting margin, and adjust the price until margin reads 40%. As a shortcut, markup % = margin % ÷ (1 − margin %).
Because both are commonly written as a single '%' figure with no denominator stated. A 50% markup and a 50% margin describe very different profitability — always check which one you're being quoted.
Related Tools
Profit Margin Calculator
Calculate your profit amount and profit margin percentage from total revenue and total cost.
Markup Calculator
Calculate your selling price and resulting gross margin by applying a markup percentage on top of your cost.
Cost Plus Pricing Calculator
Calculate a selling price by adding overhead per unit to your direct cost, then applying your desired profit margin on top of that combined total cost.
Wholesale Price Calculator
Calculate the wholesale price you'd offer a reseller by applying a wholesale discount percentage off your retail price.