What is the difference between markup and margin?

Markup is based on cost: (Profit ÷ Cost) × 100. Margin is based on selling price: (Profit ÷ Selling Price) × 100. A 50% markup gives a 33.3% margin — they are NOT the same number.

How do I calculate selling price from cost and markup?

Selling Price = Cost × (1 + Markup% / 100). For example, a product costing Rs 100 with a 40% markup: Selling Price = 100 × 1.40 = Rs 140.

What is a good profit margin for a business?

It varies significantly by industry. Retail typically targets 20–50% gross margin. SaaS businesses often aim for 60–80%. Restaurants operate on thin 3–9% net margins. Use this tool to work backwards from your target margin.

Markup & Profit Margin Calculator

Bidirectional markup and margin calculator. Edit any field — cost, selling price, profit, markup %, or margin % — and all others update instantly.

Live Calculator — edit any field

Cost Price

Selling Price

Gross Profit

Markup %

Profit Margin %

Quick Markup (requires Cost Price):

Markup vs Margin — Know the Difference

Markup % is calculated on COST PRICE.

Markup = (Gross Profit / Cost) × 100

Margin % is calculated on SELLING PRICE.

Margin = (Gross Profit / Selling Price) × 100

Example: Cost = $100, Selling = $150. Gross Profit = $50. Markup = 50% (50/100). Margin = 33.3% (50/150).

A 50% markup = 33.3% margin. They are NOT the same!

Markup & Profit Margin Calculator का उपयोग कैसे करें

1
Enter your cost price to start.
2
Type in any field — selling price, gross profit, markup %, or margin % — and all others update.
3
Or use the quick markup buttons (10%–100%) to apply a preset markup.
4
See the clear breakdown with formulas below the calculator.

Markup & Profit Margin Calculator के बारे में

The Markup & Profit Margin Calculator is a fully bidirectional tool — edit any of the five fields (cost price, selling price, gross profit, markup %, or margin %) and all others update instantly. It also clearly explains the critical difference between markup and margin, which are often confused.

Markup vs Margin: The Key Difference

Markup is calculated on cost: Markup% = (Gross Profit ÷ Cost) × 100. Margin is calculated on selling price: Margin% = (Gross Profit ÷ Selling Price) × 100. They are different numbers for the same transaction — a 50% markup equals only a 33.3% profit margin.

Quick Markup Buttons

Use the preset buttons (10%, 20%, 25%, 33%, 50%, 100%) to quickly apply a standard markup to your cost price, then see the resulting selling price and margin percentage instantly.