Pricing & Margins
Markup vs Margin Calculator
Convert between markup and margin, and see the price you need to charge to hit the margin you actually want.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit measured against cost. Margin is profit measured against the selling price. A $10 item sold at $15 carries a 50% markup but only a 33% margin, which is why the two get confused so often.
Why does a 50% markup not give a 50% margin?
Because the denominators differ. To get a 50% margin you need a 100% markup, meaning you double your cost. Working from margin backwards, as this tool does, avoids the mistake entirely.
Which should I price with?
Price with margin. Margin tells you what share of each sale you keep, which is what pays your fixed costs. Markup is useful mainly as a quick rule of thumb when buying stock.