Markup vs Margin Calculator
Markup and margin describe the same profit in different ways. Markup divides by cost; margin divides by the selling price. Mixing them up is a common pricing error.
Gross profit20.00
Markup25%
Gross margin20%
Price ÷ cost1.25
How this calculation works
Profit = price − cost.
Markup % = profit ÷ cost × 100. A 25% markup on 80 is a 100 selling price.
Margin % = profit ÷ price × 100. That same 20 of profit on a 100 price is a 20% margin, not 25%.
Worked example
Cost 80, price 100 → profit 20, markup 25%, margin 20%, multiplier 1.25×.
Frequently asked questions
Which number should I quote to a buyer?
Gross margin (of the selling price) is what finance teams use. Markup is what buyers of wholesale goods often hear. State which one you mean.
How do I get a 40% margin?
Price = cost ÷ (1 − 0.40). A 60 cost needs a 100 price. That is a 66.7% markup, not 40%.
Are numbers stored?
No. Everything stays in the browser.
This tool is provided for general information only. Verify important figures independently. · Last reviewed: August 25, 2026