Cost, Selling price
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How this calculator works
Margin and markup describe the same profit from two angles. Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product bought for 60 and sold for 100 has a 40% margin and a 66.7% markup. Mixing the two up is one of the most common pricing mistakes.
Formula
- Profit = selling price − cost
- Margin = profit / selling price × 100
- Markup = profit / cost × 100
Worked example
Cost 60, selling price 100
- Cost
- 60
- Selling price
- 100
Result40.00% margin
Profit of 40.00 on a sale of 100.00. The markup on cost is 66.67%.
Things to keep in mind
- This is gross margin on one item. Net margin also deducts overheads, taxes and other costs.
- Figures are estimates for planning. They are not financial advice, and they ignore taxes and fees unless stated.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by the cost. Markup is always the larger number for the same sale.
What is a good profit margin?
It varies widely by industry. Grocery retail runs on low single-digit net margins, while software companies often exceed 20%.
How do I convert markup to margin?
Margin = markup / (1 + markup). A 50% markup is a 33.3% margin.
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Results are estimates based on the values you enter and the published method shown above. They do not replace professional medical, financial or legal advice. Method reviewed October 7, 2026. About this site