Margin vs. Markup Calculator
Quickly calculate your margin or markup and understand the key differences to price your products correctly.
Margin Calculator
Markup Calculator
Understanding the Difference Between Margin and Markup
Margin is the percentage difference between the cost of a product and its selling price, calculated based on the selling price. For example, if a product costs $50 and is sold for $100, the margin is 50%.
Markup is the percentage difference based on the cost price. If you bought something for $50 and marked it up by 50%, the selling price would be $75, not $100.
What is the formula for calculating Margin?
Margin = (Selling Price – Cost Price) / Selling Price × 100
What is the formula for calculating Markup?
Markup = (Selling Price – Cost Price) / Cost Price × 100
Which is better, Margin or Markup?
It depends on your business goals. Markup helps you understand how much you are adding on top of your cost, while margin shows how much profit you are making from the selling price.
How does Margin affect profitability?
A higher margin means you are keeping more profit from each sale. This is crucial for financial health.
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