① Calculate Markup & Margin from Cost & Price
② Markup ⇄ Margin Converter & Smart Pricing
Set a target margin or markup, and we’ll calculate the corresponding metric and the required selling price.
Recent Calculations
Markup vs Margin: What's the Difference?
Markup is the percentage added to the cost to determine the selling price: Markup = (Price − Cost) / Cost × 100%. It reflects how much you increase the cost to cover expenses and profit.
Margin (Gross Profit Margin) is the percentage of revenue that remains after subtracting the cost: Margin = (Price − Cost) / Price × 100%. It shows the actual profitability of each sale.
Understanding both helps avoid pricing mistakes: a 50% markup equals only a 33.3% margin. Use this tool to align your pricing strategy with your financial goals.
Why it matters for ecommerce & retail: Setting prices based solely on markup can mislead about actual profit. Our calculator ensures you know both metrics to optimize for profitability and competitiveness.
Key Formulas & Conversions
Markup % = (Selling Price − Cost) / Cost × 100
Margin % = (Selling Price − Cost) / Selling Price × 100
Convert Margin to Markup: Markup = Margin / (1 − Margin)
Convert Markup to Margin: Margin = Markup / (1 + Markup)
Selling Price from Cost & Target Margin: Price = Cost / (1 − Margin%)
Selling Price from Cost & Target Markup: Price = Cost × (1 + Markup%)
Frequently Asked Questions
Margin is a better indicator of profitability because it reflects the percentage of revenue that becomes profit. Markup is useful for pricing based on cost. Savvy businesses track both.
Use the formula: Markup = Margin / (1 − Margin) → 0.30 / 0.70 = 0.4286 or 42.86% markup.
Retail markups vary widely: clothing 50-100%, electronics 20-40%, groceries 10-20%. Our calculator helps you decide based on your target margin.
Absolutely. For dropshipping, include product cost + shipping as total cost. For services, treat labor/time as cost.