In short: Profit margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. An item that costs $60 and sells for $100 has a 40% margin and a 66.7% markup.
About Profit Margin & Markup Calculator
Margin and markup describe the same profit from different starting points, and confusing them is one of the most common pricing mistakes. Markup is calculated on cost: buy at $60, add a 50% markup, sell at $90. Margin is calculated on the selling price: at $90, the $30 profit is a 33.3% margin.
This calculator converts between them. Use it to price products for a target margin, check whether a supplier’s suggested retail price leaves enough room, or translate between the margin your accountant reports and the markup your sales team uses.
How to use Profit Margin & Markup Calculator
- Choose what you know: cost and price, or cost and a target margin or markup.
- Enter the values.
- Read profit, margin, markup and selling price.
Examples
Cost $60, price $100 → profit $40, margin 40%, markup 66.7%.
Cost $60 and a 40% target margin → price = 60 ÷ (1 − 0.40) = $100.
Frequently asked questions
What is the formula for margin?
Margin = (price − cost) ÷ price × 100.
What is the formula for markup?
Markup = (price − cost) ÷ cost × 100.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin. Markup = margin ÷ (1 − margin).
Can margin be over 100%?
No. Margin approaches but never reaches 100%, because profit can never exceed the selling price. Markup can be any size.
Updated November 2026 · Free, no signup · How we build and test tools