# Markup and margin calculator

> Markup and margin are not the same number. Enter your cost and markup or price to calculate the markup percentage, the margin and the selling price.

Canonical: https://www.invoqk.com/markup-calculator

Markup is profit as a share of cost. Margin is profit as a share of price.

## How to calculate markup and margin

Markup is how much you add on top of your cost. Margin is how much of the selling price is profit. They use the same profit figure but divide by different things, which is why a 50% markup is only a 33% margin. Mixing them up is the most common pricing mistake, so this markup margin calculator shows both side by side.

Use it to price products, parts, materials and resold items on an invoice, or to convert markup to margin and back with the charts below.

### Markup to margin chart (cost of 100)

- Markup
- Margin
- Selling price

- 10%
- 9.09%
- 110

- 15%
- 13.04%
- 115

- 20%
- 16.67%
- 120

- 25%
- 20%
- 125

- 30%
- 23.08%
- 130

- 40%
- 28.57%
- 140

- 50%
- 33.33%
- 150

- 60%
- 37.5%
- 160

- 75%
- 42.86%
- 175

- 100%
- 50%
- 200

- 150%
- 60%
- 250

- 200%
- 66.67%
- 300

### Margin to markup chart (cost of 100)

- Margin
- Markup needed
- Selling price

- 10%
- 11.11%
- 111.11

- 15%
- 17.65%
- 117.65

- 20%
- 25%
- 125

- 25%
- 33.33%
- 133.33

- 30%
- 42.86%
- 142.86

- 40%
- 66.67%
- 166.67

- 50%
- 100%
- 200

- 60%
- 150%
- 250

- 70%
- 233.33%
- 333.33

### Markup formula

Markup % = (selling price − cost) ÷ cost × 100. To get the price from a markup: price = cost × (1 + markup ÷ 100).

At a 30% markup, a cost of 100 gives a price of 130.

### Margin formula

Margin % = (selling price − cost) ÷ selling price × 100. To get the price from a margin: price = cost ÷ (1 − margin ÷ 100).

A cost of 60 with a 40% margin gives a price of 60 ÷ 0.6 = 100.

### Convert markup to margin and margin to markup

Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin).

In percentages, a 25% markup is 25 ÷ 125 = 20% margin, and a 20% margin needs a 20 ÷ 80 = 25% markup.

### Worked example

You buy a part for 80 and sell it for 100. Profit is 20. Markup is 20 ÷ 80 = 25%. Margin is 20 ÷ 100 = 20%.

Same sale, two different percentages.

### Markup vs margin: which should you use?

Use markup when you set prices from cost, as retailers and resellers do. Use margin when you track profitability against revenue, since margin is the share of every sale you keep.

Be clear which one you quote to a client or in a contract.

### Calculate markup in Excel or Sheets

With cost in A2 and price in B2, markup is =(B2-A2)/A2 and margin is =(B2-A2)/B2, both formatted as percentages.

Price from cost and markup is =A2*(1+C2) where C2 holds the markup.

## Common questions

### What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by the selling price. A 50% markup is a 33.3% margin.

### How do I calculate markup percentage?

Subtract the cost from the selling price, divide by the cost and multiply by 100. A cost of 80 sold at 100 is (100 − 80) ÷ 80 × 100 = 25% markup.

### How do I calculate a selling price from cost?

Multiply the cost by 1 plus the markup. At a 40% markup, a cost of 100 gives a price of 140.

### How do I calculate the price from margin and cost?

Divide the cost by 1 minus the margin. With a 40% margin and a cost of 60, the price is 60 ÷ 0.6 = 100.

### How do I convert markup to margin?

Divide the markup by 1 plus the markup. A 50% markup is 0.5 ÷ 1.5 = 33.3% margin. Use the chart above for common values.

### Why is markup always higher than margin?

Both use the same profit, but markup divides by cost and margin divides by the larger selling price. For any profit above zero, markup is the bigger percentage.

### Can I add a markup to expenses on an invoice?

Often yes, if your contract or quote says so. Many freelancers and contractors add a markup to materials, parts or subcontractor costs to cover handling and risk. State it clearly on the invoice.

### Why does the calculator reject a cost of zero?

Markup divides by cost, so a zero cost has no defined markup.

## Related

- [Free invoice calculators](https://www.invoqk.com/calculators)
- [Invoqk home](https://www.invoqk.com)