What’s the difference between markup and margin?

Markup is the % added to cost to get sell price. Margin is the % of the sell price that is profit. A 100% markup = 50% margin. A 50% margin = 100% markup.

Which should I use for pricing?

Markup is intuitive when starting from cost. Margin is the right metric for reporting and comparing across products. Most P&Ls report margin.

CRM Business Hub

Markup Calculator

Markup vs margin — the two are not the same

Calculate markup and margin from a cost and a percentage. Retailers, wholesalers, freelancers.

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Calculate one markup — or watch live markup across every product, client and proposal in CRM Business Hub.

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Markup and margin are constantly confused, including by people who quote prices for a living. A 100% markup is not a 100% margin (it’s a 50% margin). This free Markup Calculator runs both directions: feed it cost + markup % to get sell price and margin %, or feed it cost + target margin % to get the required markup and sell price. Useful for retailers setting shelf prices, wholesalers checking distributor margins, freelancers pricing rates and consultants building proposals.

How to Use

1 Pick a mode (know markup OR know target margin) 2. Enter item cost 3. Enter the percentage 4. Read sell price, profit, markup %, margin %

Benefits

Two-way conversion (markup ↔ margin)

Shows both metrics side-by-side

Useful before quoting any price

FAQ