Definitions
Cost C, selling price P. Markup typically uses cost as the base: (P − C) / C. Margin uses price as the base: (P − C) / P.
Markup % = (P − C) / C × 100% Margin % = (P − C) / P × 100%
Don’t mix the bases
A 50% markup is not a 50% margin. If you need margin targets, convert carefully—our calculator handles the algebra.
Use the calculator
FAQ
- Which do investors care about?
Often margin (profit per dollar of sales). Markup helps purchasing and merchandising translate cost into price.