How it works
How to calculate it
The calculator applies the values you enter to this formula:
Markup = (price − cost) ÷ cost; margin = (price − cost) ÷ price.
How to use this calculator
- Enter unit cost.
- Enter actual or proposed selling price.
- Compare markup on cost with margin on revenue.
Worked example
An item costing $40 and selling for $65 has a 62.5% markup and about a 38.5% margin.
Important assumptions
- Cost and selling price are measured per unit.
- Payment fees, overhead, returns, and taxes are excluded unless included in cost.
- Markup and margin use different denominators.
Common mistakes to avoid
- Treating markup and margin as interchangeable.
- Using incomplete unit cost.
- Ignoring payment fees, returns, and overhead.
Method reviewed June 10, 2026. Prices and rates are user-provided defaults and should be replaced with local values.