What's the difference between margin and markup?

Both measure the same profit dollar amount, just as a percentage of a different number. Markup is profit divided by cost — how much you added on top of what you paid. Margin is profit divided by sale price — how much of what the customer paid is actually profit. They're never equal (except at 0%), and margin is always the smaller number for any given profit.

How do I find a sale price from a cost and a target markup?

Sale price = cost × (1 + markup %). A $30 cost with a 50% markup: $30 × 1.50 = $45.00. Use "Find sale price" mode with the Markup % toggle selected.

How do I find a sale price from a cost and a target margin?

Sale price = cost ÷ (1 − margin %). A $30 cost with a target 33.3% margin: $30 ÷ 0.667 = $45.00 — the same price as a 50% markup on the same cost, which is exactly why the two numbers get confused. Use "Find sale price" mode with the Margin % toggle selected.

Why does a 50% markup only equal a 33% margin, not 50%?

Because markup divides profit by the smaller cost, and margin divides the same profit by the larger sale price — dividing by a bigger number always gives a smaller percentage. A $15 profit on a $30 cost is 50% of the cost (markup) but only 33.3% of the $45 sale price (margin). This gap grows as the percentage gets bigger: a 100% markup is only a 50% margin, and a 300% markup is only a 75% margin.

How do I find the maximum I can pay a supplier for a target margin?

Cost = sale price × (1 − margin %). If you plan to sell at $45 and need a 30% margin, the most you can pay is $45 × 0.70 = $31.50. Use "Find max cost" mode — it works with a target markup percent too, using cost = sale price ÷ (1 + markup %) instead.

Which one should I use to price my products — margin or markup?

Margin is generally more useful for business planning because it directly answers "what percent of each sale is profit," which is what most budgeting, break-even, and profitability comparisons actually need. Markup is more intuitive for quick pricing decisions ("I paid $X, I want to add Y% on top"). Retailers commonly think in markup when pricing and in margin when reporting — this calculator handles both so you don't have to convert by hand.

Does this calculator account for taxes, shipping, or other costs?

No — "cost" here means whatever single number you enter (typically your wholesale or unit cost), and profit is calculated against that number only. If shipping, payment processing fees, or sales tax also cut into your actual take-home profit, add them to your cost figure first, or subtract them from the result, to get a true net margin.

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Margin / Markup Calculator

Find a sale price from cost and a target margin or markup, check both percentages from cost and price, or find the max cost you can pay for a target margin.

Last updated August 19, 2026

Cost (what you pay)

Target

Sale price

$45.00

Profit $15.00 · 50% markup · 33.3% margin

Cost	$30.00
Sale price	$45.00
Profit	$15.00
Markup	50% of cost
Margin	33.3% of sale price

At this price point, payment processing flat fees and packaging costs take a surprisingly large bite out of your actual earnings. With a healthy baseline built into your pricing, you have enough breathing room to absorb a few unexpected returns or offer free shipping without losing money on the sale. If these items are moving quickly, consider running a small test with a slightly higher price to see if customer demand holds steady.

AI-generated insight

How to use the margin/markup calculator

1
Pick a mode: Find sale price if you know the cost and a target percent, Find margin & markup if you know both prices, or Find max cost if you know the sale price and a target margin.
2
Enter your cost and/or sale price — where a mode asks for a percent, toggle between Markup % and Margin % and tap a preset or type your own.
3
Your result always shows both markup and margin percentages, plus profit, so you never have to convert between them by hand.

Margin vs. markup: the same profit, two percentages

Markup divides profit by cost. Margin divides the same profit by sale price — a bigger number, so a smaller percentage.

Markup % = profit ÷ cost. It answers "how much did I add on top of what I paid?" — Margin % = profit ÷ sale price. It answers "what percent of what the customer paid is profit?" Same dollar profit, two different denominators, two different percentages — and mixing them up is one of the most common pricing mistakes small businesses make.

Worked example: a $30 cost sold at $45. Profit is $15. Markup = $15 ÷ $30 = 50%. Margin = $15 ÷ $45 = 33.3%. Both describe the exact same sale — they're just answering different questions.

Quick reference table

Markup %	Equivalent margin %
10%	9.1%
25%	20%
50%	33.3%
100%	50%
200%	66.7%
300%	75%

Notice margin never catches up to markup, and the gap widens as the percentage grows — a markup can technically go above 100% (you more than doubled your cost), but margin can never reach 100%, since that would mean the item cost you nothing.

Once you've set a price, our Sales Tax Calculator and Discount / Sale Price Calculator handle what happens to that price at checkout — tax added, or a sale discount applied.

Running paid ads to sell that product? Pair your margin here with the PPC Calculator to check whether a campaign's ROAS is actually clearing your margin, not just generating revenue.

Frequently asked questions

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