Margin vs Markup Calculator
These two metrics tell you different things about profitability. Margin is what you keep from revenue. Markup is how much you added to your cost. Use the toggle to switch modes and see both sides.
Results
Margin vs. Markup — what's the difference?
Margin is profit ÷ selling price. Markup is profit ÷ cost. A 50% margin means you keep half the revenue. A 50% markup on a $50 cost means you sell at $75 — only a 33% margin.
Which should you use?
Retailers and service businesses often prefer markup because it's simpler to calculate mentally — "I mark everything up 30%" is easy to apply at the register.
Business analysts and investors prefer margin because it tells you what percentage of revenue you actually keep — more useful when comparing businesses of different sizes.
Markup = (Selling Price − Cost) ÷ Cost × 100
Selling Price = Cost ÷ (1 − Margin) = Cost × (1 + Markup)
For educational purposes. Business decisions should account for all costs, not just COGS.