What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost. The same $60 profit is a 60% margin but a 150% markup.

Profit Margin Calculator

The profit margin calculator turns a unit cost and selling price into the profit per unit, the margin percentage and the equivalent markup percentage.

The formula

Profit = price − cost, Margin % = profit ÷ price × 100, Markup % = profit ÷ cost × 100.

Worked example

A $40 cost sold for $100 makes $60 profit, a 60% margin and a 150% markup.

Frequently asked questions

What is the difference between margin and markup?: Margin is profit as a share of the selling price; markup is profit as a share of the cost. The same $60 profit is a 60% margin but a 150% markup.

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