How markup vs margin calculator works
Markup and margin both describe profit as a percentage, but from different bases. Markup is profit divided by the cost; margin is the same profit divided by the selling price. A $50 profit on a $100 cost is a 50% markup, but that same $50 on a $150 selling price is a 33.33% margin — same dollars, two different percentages because the base differs.
Enter the unit cost and the selling price you already have. The calculator computes the profit (price minus cost), the markup percentage (profit over cost), and the profit margin percentage (profit over price), plus the spread between the two so you can see how the two metrics diverge as the price rises relative to cost.
A selling price below the cost returns negative markup and margin figures — a clear signal you are selling at a loss. All math runs in your browser; nothing is sent anywhere.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit divided by the cost and margin is profit divided by the selling price. For a $100 cost and a $150 price the profit is $50, so markup is 50% (50/100) but margin is 33.33% (50/150). Because the price is always larger than the cost for a profit, the margin percentage is always smaller than the markup percentage.
Can a price below cost be entered?
Yes. If the selling price is less than the cost, the profit is negative and both the markup and margin come back negative. That is a clear indicator you are selling at a loss on that unit.
Why does the spread between markup and margin grow?
As the selling price rises relative to the cost, the profit grows but the margin base (price) grows with it. The markup percentage keeps climbing faster because its base (cost) is fixed, so the gap between the two percentages widens at higher markups.
How is this different from the Markup Calculator?
The Markup Calculator goes forward from a cost plus a chosen markup percentage to compute the selling price. This tool goes the other way: you already know the cost and the price, and it reports both the markup and the margin so you can compare them directly.
