How to use this calculator
Select whether you know your markup percentage or your margin percentage using the tabs at the top. Enter your cost price and the percentage you know. The calculator instantly shows the selling price, profit per unit, and the other percentage you need.
Use the quick reference table at the bottom to look up common markup/margin equivalents without entering any numbers.
Understanding the difference
Markupanswers: “How much did I add on top of my cost?” It is profit divided by cost. If your cost is $60 and profit is $40, markup is 66.7%.
Marginanswers: “What percentage of my selling price is profit?” It is profit divided by revenue. Same numbers: $40 profit on $100 revenue = 40% margin.
The critical point: these are never equal for the same transaction (except at 0%). A 50% markup is only a 33.3% margin. A 50% margin requires a 100% markup. Confusing the two leads to underpricing.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. Both describe the same dollar profit, just measured against different bases. Markup uses cost as the denominator; margin uses revenue.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). Express markup as a decimal first. A 50% markup (0.50) becomes: 0.50 / 1.50 = 0.333 = 33.3% margin.
How do I convert margin to markup?
Markup = Margin / (1 - Margin). A 40% margin (0.40) becomes: 0.40 / 0.60 = 0.667 = 66.7% markup.
Why can margin never reach 100%?
Margin is profit divided by selling price. For 100% margin, profit would need to equal the entire price, meaning cost would be zero. Since products always have some cost, margin stays below 100%. Markup has no upper limit because it is measured against cost.
What is keystone pricing?
Keystone means doubling the cost to set the price: a 100% markup which equals a 50% margin. A $25 cost item sells for $50. This is the traditional retail benchmark, though many businesses need higher margins to cover modern operating costs.