Margin and markup are not the same
Margin and markup use the same profit amount but divide it by different bases, so an equal margin percentage and markup percentage do not mean the same thing.
Margin is based on selling price. Markup is based on cost.
For example, if cost is 60 and selling price is 100:
Profit = 40 · Margin = 40% · Markup = 66.67%
For a 40% target margin on a cost of 60, the required selling price is 100.
Useful checks
60 → 100: profit 40, margin 40%, markup 66.67%A 50% margin equals a 100% markupA 40% markup on 60 gives a price of 84 and a 28.57% marginCost 100, price 80: loss 20 and margin −25%
What is the difference between margin and markup?
Margin divides profit by selling price, while markup divides profit by cost. For example, a 50% margin equals a 100% markup.
How do I find a selling price for a target margin?
Divide cost by 1 minus the margin as a decimal. For cost 60 and margin 40%: 60 / 0.60 = 100.
How do I find a selling price from markup?
Multiply cost by 1 plus markup as a decimal. For cost 60 and markup 40%: 60 × 1.40 = 84.
Can the calculator show a loss?
Yes. In Cost & selling price mode, selling price may be below cost, producing negative profit, margin and markup.
Does the calculator include VAT, fees or shipping?
No. This is a basic gross margin and markup calculator. Tax, fees, shipping, advertising and other costs must be handled separately.
