Markup vs Margin Calculator
The same sale, two very different percentages.
The same sale, two percentages
33.3% margin
50.0% markup
Margin is always the smaller number, because it divides by the larger figure. Confusing them always errs toward underpricing.
How the Markup vs Margin Calculator works
Markup and margin describe the same gap between cost and price, divided by different things — markup by cost, margin by price. A 50% markup is a 33% margin. Treating them as interchangeable is one of the most expensive arithmetic mistakes in retail, and it always errs toward underpricing.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost: (price − cost) ÷ cost. Margin is profit as a percentage of price: (price − cost) ÷ price. Because price is always larger than cost, the margin figure is always the smaller of the two.
What is a 50% markup as a margin?
33.3%. Buy at £10, mark up 50%, sell at £15; the £5 profit is a third of the £15 price. Someone who wants a 50% margin and applies a 50% markup ends up £5 short on every unit.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). A 40% margin needs a 66.7% markup. Going the other way, margin = markup ÷ (1 + markup).
Which should I use for pricing?
Price from margin, because margin is what your accounts and your break-even maths are expressed in. Markup is a convenient shortcut for applying a consistent rule across a catalogue — just convert it to the margin you actually need first.