Margin & Markup Calculator
Calculate margin, markup, selling price and profit based on purchase cost.
Margin vs markup β what is the difference?
Margin is the profit measured as a percentage of the selling price (how much of every currency unit earned is profit). Markup is the profit measured as a percentage of the purchase cost (how much more you sell for than you paid). For the same profit, markup is always a higher number than margin.
Results
Enter the purchase cost and a second value to see results.
Margin and markup calculator β how to use it?
Enter the purchase cost, then choose what you know: the selling price, the desired margin percentage or the markup percentage. The calculator instantly computes all remaining values β selling price, profit amount, margin and markup. Optionally select a VAT rate to also see the gross selling price.
Margin vs markup β the key difference
Margin (gross margin) is the ratio of profit to selling price: margin = profit Γ· S Γ 100. It is mainly used by sales teams and CFOs because it shows how many cents of every currency unit earned remain as profit. Margin can never exceed 100%.
Markup is the ratio of profit to purchase cost: markup = profit Γ· C Γ 100. It is mainly used by buyers and pricing teams because it directly answers the question "how much more expensive than cost are we selling?". Markup can exceed 100%.
Frequently asked questions
- What is the difference between margin and markup?
- Margin is profit expressed as a percentage of the selling price β it tells you how many cents of every dollar of revenue is profit. Markup is profit expressed as a percentage of the purchase cost β it shows how much more expensive than cost you are selling. For the same profit, markup is always a higher number than margin.
- How do I calculate the selling price from margin?
- Formula: selling price = cost Γ· (1 β margin%). Example: cost 100, margin 25% β price = 100 Γ· 0.75 = 133.33. The calculator does this automatically β select `Margin %`, enter the cost and desired margin.
- How do I calculate the selling price from markup?
- Formula: selling price = cost Γ (1 + markup%). Example: cost 100, markup 30% β price = 100 Γ 1.30 = 130. Select `Markup %`, enter the cost and markup, and the calculator will show the selling price, profit and margin.
- Does the calculator include VAT?
- Yes β optionally. After selecting a VAT rate (23%, 8%, 5% or 0%) the calculator will also show the gross selling price. All margin and markup formulas operate on net amounts (excluding VAT), in line with standard trade practice.
See also
Loan Calculators
Monthly payment, creditworthiness, APR and late-payment interest β all in one wizard.
Savings Calculators
Bank deposit with tax and compound interest β calculate how much your savings will grow.
Shopping Calculators
Margin and markup, discount and sale price β handy for retailers and bargain hunters.