Markup Calculator (Markup vs Margin)

Markup and margin are cousins that ruin prices when confused: 50% markup is only 33% margin. Price from cost using either one — the calculator always shows both, plus the conversion table.

How to use this calculator

Enter your cost per unit.
Choose whether your percentage is a markup (on cost) or a margin (of price).
Press Calculate — the result always shows both figures so nothing gets confused downstream.

Formula used

Price = Cost × (1 + markup) · Price = Cost ÷ (1 − margin)

Markup divides profit by cost; margin divides the same profit by selling price — so markup is always the larger number. Conversions: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin).

Example calculation

Worked example

Cost 600 with 50% markup: price = 900, profit = 300 — which is a 33.3% margin, not 50%.

To actually achieve a 50% margin on that cost, price = 600 ÷ 0.5 = 1,200 — a third higher. This is the exact confusion that quietly underprices products.

The most expensive vocabulary confusion in pricing

Both terms describe the same profit from different denominators: markup asks "how much did I add to cost?", margin asks "how much of the price do I keep?". A team told to "make 40%" can legitimately produce two different prices — and the markup interpretation always yields the lower one, silently eroding profitability across a catalog.

The dangerous zone is high percentages: 100% markup sounds enormous but is a 50% margin, and no markup can ever reach a 100% margin. Accountants and investors speak margin; shop-floor pricing often speaks markup — this converter is the treaty between them.

Why use this calculator?

Price from cost using whichever convention your business speaks — and see the other.
Fix the make-40% ambiguity before it underprices your catalog.
Keep the conversion table handy for quick mental checks.

Frequently asked questions

Is 50% markup the same as 50% margin?

No — 50% markup on a 600 cost gives a 900 price (33.3% margin), while a 50% margin requires a 1,200 price (100% markup). Margin is always the smaller number for the same price.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 60% markup → 0.6 ÷ 1.6 = 37.5% margin. In reverse, markup = margin ÷ (1 − margin): a 40% margin → 0.4 ÷ 0.6 = 66.7% markup.

Which should I use to set prices?

Margin, generally — it ties directly to financial statements and profit targets ("we need 45% gross margin" is a business goal; markup is just the mechanical path there). Retail habitually works in markup because it starts from cost; just never mix the two mid-calculation.