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Markup vs Margin.

Calculate profit margins and markups

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Calculation Mode

Percentage added to cost

Selling Price: $150.00

Selling Price

$150.00
Markup: 50 %

Markup

50.00%
Profit Margin: 33.33 %

Profit Margin

33.33%
Cost:$100.00
Profit:$50.00
Selling Price:$150.00

Visual Breakdown

Cost
Profit
Cost: 66.7% | Profit: 33.3%

Quick Reference: Common Markup vs Margin

Markup → Margin
25% markup= 20% margin
50% markup= 33.33% margin
100% markup= 50% margin
Margin → Markup
20% margin= 25% markup
33.33% margin= 50% markup
50% margin= 100% markup

How to Use

Markup: Markup is the percentage added to your cost to determine the selling price. It's calculated based on cost.

Margin: Margin is the percentage of the selling price that is profit. It's calculated based on selling price.

Key Insight: Example: If an item costs $50 and you sell it for $75, you have a $25 profit. That's a 50% markup (25/50) but only a 33.33% margin (25/75).

FAQs

What's the difference between markup and margin?

Markup is the percentage added to your cost to determine selling price (based on cost). Margin is the percentage of the selling price that is profit (based on selling price). A 50% markup equals a 33.33% margin.

How do I calculate markup percentage?

Markup % = (Selling Price - Cost) / Cost × 100. For example, if an item costs $50 and sells for $75, the markup is ($75 - $50) / $50 × 100 = 50%.

How do I calculate profit margin percentage?

Margin % = (Selling Price - Cost) / Selling Price × 100. Using the same example ($50 cost, $75 selling price), the margin is ($75 - $50) / $75 × 100 = 33.33%.

Why can't I have a 100% margin?

A 100% margin would mean all of the selling price is profit with no cost, which is impossible. Margin can approach but never reach 100%. A 100% markup (doubling your cost) gives you a 50% margin.

Cite this calculator

Canonical URL: https://mathify.one/ru/business/markup

Cite as: Mathify. (2026). Наценка и маржа. https://mathify.one/ru/business/markup

Use Cases

Retail Pricing

Set retail prices by adding a markup to your wholesale cost. Enter cost and markup percentage to get the selling price.

Example: Wholesale cost $50, markup 40% → selling price $70

Wholesale and Service Pricing

Determine the selling price for wholesale goods or services by specifying cost and desired margin or markup.

Example: Service cost $200, margin 30% → selling price $285.71

Frequently Asked Questions

What is the difference between markup and margin?
Markup is the percentage added to the cost to get the selling price. Margin is the percentage of the selling price that is profit. For example, a 50% markup on a $100 cost gives a $150 selling price, but the margin is only 33.3%.
How do I calculate selling price from cost and markup percentage?
Enter the cost and the markup percentage. The calculator will compute the selling price by adding the markup amount (cost × markup%) to the cost. For instance, $100 cost with 25% markup gives a $125 selling price.
Can I use this calculator for service businesses?
Yes, this calculator works for any business that needs to set prices based on cost and desired profit. Enter your service cost and either the markup or margin percentage to find the selling price.

Tips & Common Mistakes

Tips

  • Decide whether you want to use markup or margin, as they yield different selling prices for the same percentage.
  • Use the calculator to compare markup and margin percentages to ensure your pricing strategy meets your profit goals.
  • Remember that margin is always less than markup for the same selling price, so don't confuse the two.
  • For accurate results, enter the cost in dollars and the percentage as a whole number (e.g., 25 for 25%).

Common Mistakes to Avoid

  • Confusing markup and margin: a 50% markup does not mean a 50% margin.
  • Entering the percentage as a decimal (e.g., 0.25 instead of 25) which will give incorrect results.
  • Forgetting to include all costs when determining the cost input, leading to underpricing.

Last updated: August 13, 2026