Markup vs. Margin Calculator
Compare markup percentage and margin percentage to better understand your pricing strategy
Markup Percentage
0%
Margin Percentage
0%
Comparison Table
Metric | Value |
---|---|
Cost Price | $0.00 |
Selling Price | $0.00 |
Profit | $0.00 |
Markup Percentage | 0% |
Margin Percentage | 0% |
Understanding Markup vs. Margin
Markup is the percentage added to the cost price to determine the selling price. It’s calculated based on the cost.
Markup Formula: Markup % = ((Selling Price – Cost Price) / Cost Price) × 100
Margin (or gross profit margin) is the percentage of the selling price that is profit. It’s calculated based on the selling price.
Margin Formula: Margin % = ((Selling Price – Cost Price) / Selling Price) × 100
While both metrics measure profitability, they represent different perspectives. Markup shows how much you’ve added to the cost, while margin shows what percentage of the selling price is profit.