Margin & markup calculator
Margin and markup use the same profit with different denominators.
Cost and selling price
Currency-neutral: enter both numbers in the same currency. No tax, shipping or other rate is assumed.
Result
No result yet. Enter cost and selling price, then select Calculate margin.
Formulas
- Profit = selling price − cost.
- Margin = profit ÷ selling price × 100. It answers “what share of the price is profit?”
- Markup = profit ÷ cost × 100. It answers “how much was added to cost?”
Why the percentages differ
With a cost of 40 and a selling price of 100, profit is 60. Margin is 60 ÷ 100 = 60%. Markup is 60 ÷ 40 = 150%. They are not interchangeable: a 50% margin is not a 50% markup.
Zero denominators and losses
If the selling price is 0, margin is undefined and is shown that way; a free item has no price base. If cost is 0, markup is undefined; margin can still be calculated. A selling price below cost gives negative profit, margin and markup, which is a real loss rather than an error. Negative cost or price inputs are rejected as not meaningful.
Precision and scope
Values are currency-neutral: use the same currency for cost and price. The tool does not add tax, shipping, fees or recommended prices, and it is not financial advice. Inputs allow up to 15 significant digits; displayed results use at most 12 decimal places (or exponential notation for extreme values) and clearly label any undefined percentage.
Example
Example
Cost 40, selling price 100 → profit 60, margin 60%, markup 150%.
Common questions
Why are margin and markup different?
Margin divides profit by selling price; markup divides profit by cost. The same profit therefore produces two different percentages.
What if the selling price is zero or below cost?
A zero selling price leaves margin undefined. A price below cost produces negative profit, margin and markup, which is a real loss rather than an input error.
Does this include tax or fees?
No. Inputs are currency-neutral and the tool makes no tax, shipping, fee or pricing recommendation. Add those costs to the inputs yourself if needed.