Financial

Free Margin vs Markup Calculator

Convert between profit margin and markup percentages.

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Inputs

$
$

Result

Margin

33.3%

Markup50.0%
Profit$20.00

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Short answer

Convert between profit margin and markup percentages.

What is the Margin vs Markup Calculator?

Convert between profit margin and markup percentages.

How does the Margin vs Markup Calculator work?

Enter the inputs above and read the result.

Formula

Margin = Profit ÷ Price; Markup = Profit ÷ Cost

Variables

  • ProfitPrice − Cost

Explanation

For the same sale, markup is always higher than margin because it's divided by a smaller base.

Examples

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          Tips

            Related concepts

            The Margin vs Markup Calculator sits inside the Finance Calculators hub, in the business & accounting cluster. Unit economics, margins and company metrics. Understanding the terms below makes the output easier to interpret and easier to compare against neighbouring measures.

            contribution marginfixed costvariable costrunwayLTV:CACoperating leverage

            Practical use cases and industry applications

            Understanding Margin vs Markup

            Convert between profit margin and markup percentages. Within finance calculators, margin vs markup belongs to the business & accounting cluster, where it shares terminology and assumptions with closely related tools.

            Learning how margin vs markup is calculated

            For the same sale, markup is always higher than margin because it's divided by a smaller base. Working through the variables one at a time — Profit — makes the result reproducible by hand and easier to sanity-check.

            Using margin vs markup to make a decision

            Because outputs depend on the assumptions you enter, run more than one scenario before committing to a figure.

            How margin vs markup compares with related measures

            contribution margin, fixed cost, variable cost, runway all describe adjacent aspects of business & accounting. Comparing this calculator's output against those measures — using the related tools listed on this page — prevents a single metric from being read in isolation.

            Frequently asked questions

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