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Finance Calculator

Profit Margin vs. Markup Calculator

Compare markup and margin correctly from cost and selling price.

Formula: Markup = (Price - Cost) / Cost; Margin = (Price - Cost) / Price

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Tip: figures are local to your browser and are not uploaded.

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About This Module

The Profit Margin vs. Markup Calculator instantly converts between two of the most commonly confused business metrics. Enter your cost and selling price to see both percentages side by side, eliminating costly pricing errors and helping you communicate figures accurately with partners, suppliers, and accountants.

What Is a Profit Margin vs. Markup Calculator?

Markup and margin both measure the relationship between cost and selling price, yet they use different denominators and produce different percentages. Markup is the profit expressed as a percentage of cost, while margin expresses profit as a percentage of the selling price. Confusing the two can lead to significant pricing mistakes that erode profitability. This browser-based calculator shows both values simultaneously so you can set prices confidently and verify that your margins meet business targets.

How It Works

Simply enter the cost of your product or service and the selling price you charge. Click Calculate and the tool displays both the markup percentage and the profit margin percentage instantly. All processing happens locally in your browser with no data uploaded and no login required. You can experiment with different price points to see how each adjustment affects both metrics, making it easy to find the ideal balance between competitive pricing and healthy profitability.

Best Use Cases

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