Markup vs. margin calculator
Markup and margin measure the same profit from two different angles — mixing them up is a common pricing mistake. See both, calculated from your own cost and price.
Profit
$40.00
Margin
40%
Profit ÷ selling price
Markup
66.67%
Profit ÷ cost
Your analysis
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How this is calculated
Margin is profit divided by your selling price; markup is profit divided by your cost. They describe the same dollar amount of profit, but because the denominators differ, markup is always a higher percentage than margin whenever there's a profit — for example, a 40% margin is the same profit as a 66.7% markup. Pricing a product using a margin percentage when you meant markup (or vice versa) is one of the most common small-business pricing mistakes, which is why both numbers are shown together here.
This is an educational estimate, not financial advice.