Markup vs Margin Calculator
Compare markup percentage against profit margin.
Enter your values
Enter the unit cost in $.
Enter the selling price in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Markup
- 50%
- Margin
- 33.33%
- Profit per unit
- $20
- Selling price
- $60
Quick answer
Markup is profit divided by cost, while margin is profit divided by selling price — they are never the same number.
markup = (price - cost) / cost; margin = (price - cost) / price
At a glance
| What it does | Compare markup percentage against profit margin. |
|---|---|
| Category | Business |
| Inputs needed | Unit cost, Selling price |
| Main output | Markup |
| Formula | markup = (price - cost) / cost; margin = (price - cost) / price |
| Cost | Free — no sign-up, no download |
How to use the Markup vs Margin Calculator
- 1Enter what the item costs you.
- 2Enter what you sell it for.
- 3Compare markup and margin — they diverge more as the profit percentage grows.
Inputs explained
- Unit cost($)
- Enter the unit cost in $.
- Selling price($)
- Enter the selling price in $.
Worked example
Using the values the calculator loads with:
Inputs
- Unit cost40 $
- Selling price60 $
Results
- Markup50%
- Margin33.33%
- Profit per unit$20
- Selling price$60
Frequently asked questions
Why are markup and margin different?
Markup divides profit by cost; margin divides the same profit by the higher selling price, so margin is always smaller.
Which should I use for pricing?
Markup is easier for pricing from cost; margin is what shows up in your P&L.
What do I need to enter into the Markup vs Margin Calculator?
Just 2 values: unit cost, selling price. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Markup vs Margin Calculator work out the answer?
Markup is profit divided by cost, while margin is profit divided by selling price — they are never the same number. It applies the formula markup = (price - cost) / cost; margin = (price - cost) / price and shows the working so you can check each step by hand.
Is the Markup vs Margin Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.