Free Tool

Pricing Markup vs Margin Calculator

Convert between markup and margin instantly. Enter your cost price and desired profit percentage to calculate selling price, actual markup, margin, and profit per unit.

Part of WebToolsHQ — simple tools for creators and small businesses.

The price you pay to produce or purchase one unit.

%

Percentage of the selling price that is profit.

Margin → Selling Price Formula

Selling Price = Cost ÷ (1 − Margin ÷ 100)

Margin is the percentage of the selling price that is profit.

Markup vs Margin — What's the Difference?

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup equals a 33.3% margin. They describe the same profit from different perspectives.

Quick tip

Use the toggle above to switch between margin-based and markup-based calculation. This is useful when your supplier quotes markup but your financials require margin percentages, or vice versa.

About Pricing Markup vs Margin Calculator

Why Freelancers Mix These Up — and Why It Matters

Markup and margin measure the same profit from opposite ends, and the numbers are never equal — which is where the confusion starts. Quote a 50% markup when a client is expecting a 50% gross margin, and you've already mis-priced the project. This calculator makes the conversion instant so you can speak either language with confidence.

The Core Difference at a Glance

Markup is profit as a share of your cost. Margin is profit as a share of the selling price. Because the denominator flips, a 50% markup is only a 33.3% margin — the same euro profit, two very different-looking percentages.

Margin → Selling Price

Cost ÷ (1 − Margin%)

Example: €50 cost at 30% margin → €71.43

Markup → Selling Price

Cost × (1 + Markup%)

Example: €50 cost at 50% markup → €75.00

Which Mode Should You Use?

Use margin mode when your accountant, invoicing tool, or client talks in terms of gross margin — it's the standard in most financial reports. Use markup mode when your supplier's pricing sheet or your own cost-plus quote is built around markup on cost. The toggle in the calculator lets you work in whichever language fits the situation, and always shows you both figures side by side.

Got questions?

Frequently Asked Questions

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What is the difference between markup and margin?

Markup is the percentage added on top of the cost price to arrive at the selling price. Margin is the percentage of the selling price that represents profit. For example, if a product costs €50 and sells for €100, the markup is 100% (profit relative to cost) while the margin is 50% (profit relative to selling price).

Why does a 50% markup not equal a 50% margin?

They use different bases. A 50% markup means profit is 50% of cost, while a 50% margin means profit is 50% of selling price. A 50% markup actually equals a 33.33% margin. The markup percentage is always higher than the corresponding margin percentage for the same profit amount.

How do I calculate selling price from margin?

Use the formula: Selling Price = Cost ÷ (1 − Margin ÷ 100). For example, if your cost is €50 and you want a 30% margin, the selling price is €50 ÷ (1 − 0.30) = €71.43.

How do I convert markup to margin?

Use the formula: Margin % = (Markup ÷ (100 + Markup)) × 100. For a 50% markup: (50 ÷ 150) × 100 = 33.33% margin. The calculator handles this conversion automatically when you use the "Markup → Margin" mode.