Margin & Markup Calculator
Calculate profit margin, markup percentage, and selling price. Convert between margin and markup instantly.
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Margin vs Markup
Margin = Profit / Selling Price. Markup = Profit / Cost. They're related but different. A 50% markup equals a 33.3% margin. A 100% markup equals a 50% margin. Margin is always lower than markup for the same profit. Businesses typically set prices using markup (add X% to cost) but measure profitability using margin (what % of revenue is profit). Common markups by industry: Grocery (5-15%), Apparel (50-100%), Jewelry (100-300%), Restaurants (200-400%).
Frequently Asked Questions
What's the difference between margin and markup?
Margin is profit as a % of selling price. Markup is profit as a % of cost. A $75 item sold for $120 has 37.5% margin but 60% markup.
What is a good profit margin?
Varies by industry: 1-3% for grocery, 5-10% for manufacturing, 10-20% for services, 20-40% for software. Higher margins mean more profit per sale.