Margin Vs Markup Calculator

Maximize Your Profit Potential: Simplify Your Margin vs. Markup Calculations!

Margin

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Markup

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Markup and margin are sales terms. Both help you calculate a product's profit at a given selling price. However, both are similar concepts but not the same.

You can use our margin vs markup calculator to understand the difference between both terms.

Margin vs markup calculator

Our margin vs markup calculator can help you determine the selling price, profit, and difference between margin and markup.

How to use this calculator:

For example, the product costs you $100 and you want a profit margin of 40% on your sales. Enter $100 in the cost of item field and 40% in the margin field. This will automatically calculate the sale price, markup, and profit.

Metric Value
Cost of Product $100.00
Margin (%) 40.00%
Markup (%) 66.67%
Sale Price $166.67
Profit $66.67

On the other hand, if you enter $100 in the cost of item field and markup 40%. This will give you the following results.

Metric Value
Cost of Product $100.00
Markup (%) (desired profit) 40.00%
Actual Markup (%) 28.57%
Sale Price $140.00
Profit $40.00

In the above example, you can see that similar margins and markup give different profits. This comparison helps you to set the proper sale price to make a better profit.

Margin vs markup chart

Use this margin vs markup comparison chart for the markup of a given margin and vice versa.

MarginMarkup
5%5.26%
10%11.11%
13%14.94%
16.67%20%
20%25%
23%30%
25%33.33%
33%50%
40%66.67%
50%100%

So if your markup is 66.67% you will get a 40% margin.