Don't Confuse Markup with Margin — Calculate Both Instantly

See how a 50% markup equals a 33.3% profit margin. Input your cost or desired price to get exact margin and markup percentages side by side.

Select Currency

Item Cost

Desired Price

Profit Margin (%)

37.5%

Healthy Margin

Profit ($)

$30.00

Markup (%)

60.0%

Cost vs Profit Breakdown 63% Cost / 37.5% Profit

The Critical Difference Between Margin & Markup

Setting a 25% markup on a $100 product gives a $125 selling price, but your actual margin is only 20%. Knowing both numbers prevents underpricing.

Margin = (Profit / Price) × 100
Markup = (Profit / Cost) × 100

Smart Automation

BiznessBook shows both margin % and markup % for every inventory item automatically.

FAQ

Why is markup always higher than margin?

Because markup is calculated against the lower base number (cost), whereas margin is calculated against the higher total revenue number.