What is the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost.
Calculators
Margin vs Markup Calculator
See the difference between margin and markup using cost and selling price.
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Compare margin and markup from cost and price.
When to use this tool
Use it when cost and selling price need both margin and markup. The tool separates profit over price from profit over cost.
- Compare margin and markup before setting a price.
- Check whether a quote meets a target profit structure.
- Explain why markup percent is not the same as margin percent.
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FAQ
Questions
Questions
What if cost is zero?
Markup is undefined when cost is zero, so this tool asks for a positive cost value.
Can selling price be lower than cost?
Yes. The calculator will show a negative margin and markup in that case.