Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100. Selling at cost 60 for 100 gives a 40% margin but a 66.67% markup.
Estimates for information only — not financial advice. Actual terms, fees, and rates depend on your provider.
Margin and markup describe the same profit from two different angles, and mixing them up silently destroys pricing. This calculator shows both, side by side, from your cost and selling price.
Formula & methodology
Profit = revenue − cost
Margin (share of revenue) = profit ÷ revenue × 100 — what accountants and reports usually mean
Markup (share of cost) = profit ÷ cost × 100 — what pricing formulas usually use
Worked example
Cost 60, selling price 100 → profit 40, margin 40%, markup 66.67%. Pricing "at 40% markup" instead of "40% margin" would sell at 84, quietly giving up 16 per unit.
Limits
Cost here means your full unit cost; excluded overheads make both numbers look better than reality.
Frequently asked questions
Which number should I quote — margin or markup?
Financial statements and most business reporting use margin (share of revenue). Markup is convenient when setting a price from a known cost. Always name which one you mean.
