Convert between markup and margin percentages, calculate selling price, and compare pricing strategies.
Type the cost of the product or service.
Type the price you charge or plan to charge.
See both markup percentage and profit margin calculated.
Markup and margin describe the same price spread from different starting points. Enter a cost with either a markup percentage, a margin percentage, or a selling price to calculate the corresponding price and percentage values. The common mistake is treating markup and margin as interchangeable. Markup divides profit by cost, while margin divides profit by selling price, so a 25% markup produces a 20% margin rather than a 25% margin.
A concrete input and expected output from the current implementation.
Input
Cost: $80 Markup: 25%
Expected output
Selling price: $100.00 Margin: 20.00%
The markup adds $20, which is 25% of the $80 cost. That $20 difference is 20% of the resulting $100 selling price, so the margin is 20%.
When cost and markup are provided, the calculator multiplies cost by the markup rate to find the dollar difference, then adds that difference to cost. It calculates the equivalent margin by dividing the difference between selling price and cost by the selling price. This conversion makes two pricing proposals stated with different percentage bases directly comparable.
For a target margin, selling price equals cost divided by one minus the margin rate expressed as a decimal. The equivalent markup is then the price-cost difference divided by cost. For example, a 20% target margin requires dividing cost by 0.80, while a 20% markup requires multiplying cost by 1.20. Those operations produce different prices.
The percentages use different denominators. Markup compares the price-cost difference with cost, while margin compares that same difference with selling price. Because selling price is normally larger than cost, the margin percentage is smaller. With an $80 cost and $100 price, the $20 difference is 25% of cost but 20% of price.
No, except when the percentage is zero. Applying the same positive number gives different selling prices because markup is applied to cost and margin is reserved as a share of selling price. If a policy calls for a 30% margin, entering 30% as markup will understate both the required price and the resulting margin.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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