How it works
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup equals a 33.3% margin.
Formula
Price = Cost × (1 + Markup %) · Margin = Profit ÷ Price
Example
A $40 item with a 50% markup sells for $60 — $20 profit and a 33.3% margin.
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
What's the difference between markup and margin?
Markup divides profit by cost; margin divides profit by price, so margin is always lower.