Markup vs Margin Calculator
Markup and margin are not the same thing. Enter your cost and either metric to instantly convert between them and see the selling price and profit per unit.
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Selling Price
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Markup
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Margin
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Markup to Margin Quick Reference
| Markup % | Margin % | Selling Price (on $10 cost) |
|---|---|---|
| 15% | 13.0% | $11.50 |
| 25% | 20.0% | $12.50 |
| 33.33% | 25.0% | $13.33 |
| 50% | 33.3% | $15.00 |
| 75% | 42.9% | $17.50 |
| 100% | 50.0% | $20.00 |
| 150% | 60.0% | $25.00 |
| 200% | 66.7% | $30.00 |
Markup vs Margin: The Difference Explained
The Core Difference
Markup is the percentage added to the cost price to get the selling price. Margin is the percentage of the selling price that is profit. A product costing $10 and selling for $20 has a 100% markup but a 50% margin. They describe the same profit in different terms, and confusing them is one of the most common pricing mistakes in ecommerce.
Why It Matters
If a supplier tells you to apply a 50% markup and you accidentally apply a 50% margin, you will be overcharging significantly. A 50% markup on a $20 cost gives a $30 selling price. A 50% margin on a $20 cost gives a $40 selling price. That is a 33% pricing error that could cost you sales or leave money on the table depending on which direction you get it wrong.
Which Should You Use?
Most ecommerce businesses and retailers talk in terms of margin because it directly relates to revenue. Financial reports, profit targets, and industry benchmarks typically use margin. Suppliers and wholesale pricing more often use markup. Use whichever your team and industry prefers, but always be clear about which one you mean.
Protect Your Margins Automatically
Knowing your markup and margin is the foundation. Price Patrol builds on it by monitoring competitor prices and adjusting yours while respecting the minimum margin you set. Never sell below your target margin again.
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