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Markup and margin calculator

Markup and margin are not the same thing, and mixing them up quietly costs you money. Enter your cost and either number.

Why it matters

Markup is profit as a percent of your cost. Margin is profit as a percent of the price. A 25% markup is only a 20% margin. If you need to keep 30% of every sale after costs, you need a 42.9% markup, not 30%.

Example: cost $1,000, markup 25% gives a price of $1,250 and profit of $250, which is a 20% margin.

Questions

What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by selling price. The same job has a higher markup number than margin number.

How do I turn a margin into a markup?

Markup = margin / (1 - margin). For a 30% margin, markup is 0.30 / 0.70 = 42.9%.

Does this include overhead and taxes?

No. Include overhead in your cost, or use a markup big enough to cover it.

Does this store my data?

No. It runs in your browser.

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