Markup Calculator

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Equivalent profit margin-

Markup vs. Margin: They're Not the Same

Markup is the profit added on top of your cost, expressed as a percentage of cost. Profit margin is the profit expressed as a percentage of the selling price. The two numbers are always different for the same product — a common source of pricing mistakes.

Formulas

Selling price = Cost × (1 + Markup %)

Profit margin % = (Selling price − Cost) ÷ Selling price × 100

Frequently Asked Questions

Is a 50% markup the same as a 50% profit margin?

No. A 50% markup on a $20 cost gives a $30 price, which is actually a 33.3% profit margin, not 50%. They're calculated from different bases.

Which should I use to price my products, markup or margin?

Either works, but be consistent, and know that a target margin (e.g. 40% margin) always requires a higher markup percentage than the margin number itself.

Does this include taxes or fees?

No, this calculates pure cost-to-price markup. Add any taxes, platform fees, or shipping costs to your cost basis first if you want them reflected in the price.

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