GlenCalc

Margin and markup calculator

Margin is profit as a share of the price; markup is profit as a share of the cost. Enter cost and price, or a cost and the margin or markup you want.

Your answer

Profit margin33.33 %
Profit$20.00
Markup50 %
Margin33.33 %

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How we worked it out

Updated as you change the numbers.

  1. Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost.
  2. Price for a margin m = cost ÷ (1 − m). Price for a markup k = cost × (1 + k).

Method and assumptions

Margin and markup describe the same profit against different bases, so they are never equal. A 50% markup gives a 33.3% margin; a 50% margin needs a 100% markup. Retailers usually talk in margin; many trades price by markup.

Questions

What is the margin on an item that costs $40 and sells for $60?

$20 profit: a 33.33% margin and a 50% markup.

Sources

Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.

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