Thrivelance Tools

Markup & Margin Calculator

Turn a cost and a markup into a selling price — and see the profit margin it produces. Markup and margin are easy to confuse: a 50% markup is only a 33% margin. Enter your numbers to get both, instantly.

Price from cost and markup

Figures update as you type. Markup is measured against cost; margin against the selling price.

Selling price

$150.00

Cost + profit.

Profit

$50.00

Cost × markup %.

Profit margin

33.3%

Profit ÷ selling price.

Markup vs margin

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. Because price is always larger than cost, the margin percentage is always smaller than the markup that produced it.

Why the difference matters

Confusing the two quietly erodes profit. Pricing for a “30% margin” but applying a “30% markup” leaves you short — that markup only yields about a 23% margin. Always be clear which one you mean.

Converting between them

Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin). So a 50% markup is a 33.3% margin, and a 50% margin needs a 100% markup.

FAQ

Common questions about this calculator.

What's the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. Since price is always higher than cost, the margin percentage is always lower than the markup.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin. Going the other way, markup = margin ÷ (1 − margin), so a 50% margin needs a 100% markup.

How do I calculate a selling price from cost?

Multiply the cost by the markup percentage to get the profit, then add it to the cost. A $100 cost with a 50% markup sells for $150.

Which should I use to price my work?

Retailers reselling goods often think in markup; service businesses usually think in margin. For pricing your time, the Hourly Rate Calculator is a better fit.