Numarly

Profit Margin & Markup Calculator

Convert between cost, selling price, margin, and markup in any direction.

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What is it?

This calculator converts freely between cost, selling price, profit margin, and markup — the two most commonly confused pricing metrics in business — starting from whichever value you know.

Formula

Margin % = (Selling Price − Cost) ÷ Selling Price × 100
Markup % = (Selling Price − Cost) ÷ Cost × 100

Formula Explanation

Margin and markup both measure profit but use different bases — margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. This is why a 50% markup is not the same as a 50% margin: a $100 cost item sold at 50% markup is $150 (33.3% margin), while the same item priced for a 50% margin would need to sell for $200.

Example Calculation

A product costing $300 sold for $450 has a profit of $150, giving a 33.3% margin (150 ÷ 450) but a 50% markup (150 ÷ 300) — same numbers, two different percentages.

How to Use

  1. Enter your cost price.
  2. Choose whether you're starting from a known selling price, a target margin, or a target markup.
  3. Enter that value.
  4. Read off the selling price, profit, margin, and markup all at once.

Benefits

  • Converts between margin and markup instantly, avoiding a very common pricing mistake.
  • Lets you price forward from a target margin or markup, not just analyze an existing price.
  • Shows all four values together so you never have to run the calculation twice.

Use Cases

  • Setting a selling price that hits a specific target profit margin.
  • Checking whether a supplier's suggested markup actually delivers the margin you need.
  • Comparing pricing strategy across products using consistent margin figures.

What Your Result Means

Margin tells you what percentage of each sale is profit — useful for overall profitability planning. Markup tells you how much you added on top of cost — useful for setting prices from a cost base. Always confirm which one a colleague or supplier means, since the same target price yields very different numbers depending on which is used.

Tips

  • Retailers commonly think in markup, while accountants and financial statements almost always use margin — know which one you're being asked for.
  • A common pricing mistake is using markup % when margin % was intended, which usually results in underpricing.
  • For high-margin targets (above 50%), small changes in markup require increasingly large changes in price — check both numbers before finalizing.

Common Mistakes

  • Assuming margin and markup are the same percentage — they're only equal at 0%, and diverge more as the percentage increases.
  • Using markup percentage in a margin-based profitability model, which overstates true profitability.
  • Forgetting to include all relevant costs (shipping, packaging, payment processing) in the cost price before calculating.

FAQs

What's the difference between margin and markup?

Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost price — the same profit amount produces a lower margin percentage than markup percentage.

Which one should I use for pricing decisions?

Markup is often easier for setting a price from a known cost, while margin is more useful for overall business profitability analysis and matches how most financial statements report profitability.

Can markup be over 100%?

Yes, markup has no upper limit — a 200% markup means selling at 3x the cost. Margin, however, can never reach 100%, since that would mean zero cost.

This tool calculates gross profit margin and markup on cost price alone — it does not include operating expenses, taxes, or other overhead.

Last updated: July 26, 2026