Markup vs Margin Calculator
Markup vs Margin
Convert between markup percentage and profit margin to understand the true profitability of products or services.
$
$
Formula
Markup = (Selling Price - Cost) / Cost x 100; Margin = (Selling Price - Cost) / Selling Price x 100
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost to get the selling price (based on cost). Margin is the percentage of the selling price that is profit (based on revenue). A 100% markup equals a 50% margin.
Which should I use for pricing decisions?
Margin is more commonly used in financial analysis because it shows what portion of revenue is profit. Markup is more intuitive when setting prices from a known cost basis.
You may also need
$
Break-Even Analysis Calculator
Determine the number of units or revenue needed to cover all fixed and variable costs and reach the break-even point.
Finance$
Freelance Rate Calculator
Free freelance hourly rate calculator. Calculate the minimum rate to charge based on desired salary, billable hours, expenses, and taxes. Set profitable freelance pricing.
Finance