Free calculator
Markup and margin calculator
Enter your cost price and pick your own markup, margin or selling price. You see the other percentage straight away, with the sum shown. All amounts exclude VAT and stay in your browser.
The fields hold an example. Replace them with your own numbers.
Your profit as a percentage of the cost price.
Your profit as a percentage of the selling price.
Only in your own browser, not on our server. Untick it to clear it again.
Quick convert
Type a markup to see the margin, or the other way round. The same sum, without a cost price.
Margin = markup / (100% + markup). Markup = margin / (100% − margin).
Why are markup and margin not the same?
Both describe the same profit, but they divide it by a different amount. Markup is the profit as a percentage of your cost price. Margin is the same profit as a percentage of your selling price.
Example: you buy something for € 100 and sell it for € 125. Your profit is € 25. Markup: € 25 / € 100 = 25%. Margin: € 25 / € 125 = 20%.
Because the selling price is higher than the cost price, the margin for the same profit is always lower than the markup. A margin can never reach 100%. A markup can go above 100%.
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 33.33% | 25% |
| 50% | 33.33% |
| 100% | 50% |
Pure arithmetic. The table says nothing about which percentage suits your work: that is your choice.
Frequently asked questions
What is the difference between markup and margin?
Markup is your profit divided by your cost price. Margin is the same profit divided by your selling price. So for the same profit, the margin is always lower than the markup.
Is margin the same as profit?
No. Here margin is your selling price minus your cost price, as a percentage of the selling price. Your own hours, overheads and other costs are not in it. What is left after you have paid those is a different sum.
Do I calculate with or without VAT?
Without. Enter the cost price and selling price excluding VAT, and the VAT stays out of your markup and margin.
Are my numbers stored?
No. The sum runs in your browser and your numbers never go to a server. We only count anonymously how the page is used (no cookies, no IP address). Only if you tick “Remember my input” does your own browser keep the numbers on your own device.
Making quotes at your own prices?
Describe the job. Briefbee writes the quote in your words and at your prices; you check it and send it.