Margin Versus Markup Calculator

Free calculator · Model 1.0.0

Margin versus markup calculator

This estimate uses only the assumptions you enter. It is not a market-price recommendation or a guarantee of profit.

Enter the cost the price needs to cover.
For target margin, enter less than 100%.

Why the distinction matters

Markup is the surplus divided by cost. Margin is the surplus divided by selling price. If cost is $100, a 20% markup sets price at $120 and leaves a 16.67% margin. A 20% target margin sets price at $125, which is a 25% markup.

Read the worked explanation →