Business & Freelance tool

Markup Calculator vs Margin Calculator

Markup and margin are not the same. A 50% markup on a $20 item gives a $30 selling price and a 33% margin, because margin is profit divided by selling price, not cost. The Markup vs Margin Calculator accepts either percentage and shows the other, the selling price, the profit and the cost.

Pick the mode your industry uses: agencies usually quote margin, retail and wholesale usually quote markup. The tool handles both and shows the maths in plain English.
Calculator

Formula used

Selling price = cost × (1 + markup) · Margin = (selling − cost) ÷ selling × 100%

How to use the Markup Calculator vs Margin Calculator

  1. Pick whether you start from markup or margin.
  2. Enter the unit cost and the percentage.
  3. Read the selling price, profit and the other percentage.
  4. Use the table to translate the maths into a price tag.

About this tool

The Markup Calculator vs Margin Calculator is built for speed and accuracy: every calculation runs in your browser, so your data never leaves your device and the result updates as you type. It works equally well on a phone, a tablet or a desktop, and it is free to use as many times as you like.

Common use cases

  • Setting retail prices from wholesale cost.
  • Quoting an agency day rate with a target margin.
  • Converting a competitor's margin into your markup.
  • Working out the price for a new product line.

Tips for the best result

  • Use the latest figures you have - even a small change in rate or term can shift the outcome by hundreds.
  • For annual figures, divide by 12 to get a monthly number you can compare with the result.
  • Bookmark this page and revisit the calculation as the inputs change.

Frequently asked questions

Which should I use, markup or margin?

Wholesale and retail usually quote markup because it is calculated on cost. Services and SaaS usually quote margin because investors look at margin. The calculator handles both.

What margin is healthy?

Retailers typically aim for 35-50% gross margin; restaurants 60-70% (because of food cost); agencies 50-80%; SaaS 70-90% once scaled.