Convert between markup and margin and derive the
sell price, profit and both percentages from a cost.
Markup is profit relative to cost; margin is profit relative to the sell price.
For commercial guidance only. Confirm pricing against your own terms.
About this markup and margin calculator
This free markup, margin and sell price calculator turns a cost into a selling price and shows the profit alongside both percentages at once. Enter your cost of goods, choose whether your figure is a markup (on cost) or a margin (on sell), and it returns the sell price, the profit and the equivalent markup and margin percentages. So it doubles as a markup-to-margin converter in either direction. It is aimed at UK contractors, merchants and estimators pricing materials, labour or supply-and-fit packages at tender stage. All figures exclude VAT.
How markup and margin are calculated
Markup and margin both describe the same profit (sell − cost); they differ only in the base they are measured against. Markup % is profit divided by cost; margin % is profit divided by the sell price. The sell price is therefore cost × (1 + markup% ÷ 100) on a markup basis, or cost ÷ (1 − margin% ÷ 100) on a margin basis. Because the margin formula divides by 1 − margin%, a margin must stay below 100%. It diverges at 100% and turns negative above it, while markup has no upper bound. Method per AccountingTools, The difference between margin and markup: a 70 cost sold at 100 is a 30% margin but a 42.9% markup. Markup is always the larger of the two for the same profit.
Frequently asked questions
What is the difference between markup and margin?
They measure the same cash profit against different bases. Markup is profit as a percentage of your cost; margin is profit as a percentage of the price you sell at. For a given profit the markup percentage is always higher than the margin percentage.
How do I convert a margin into a markup?
Work out the sell price from the margin (cost ÷ (1 − margin% ÷ 100)), take the profit (sell − cost), then divide that profit by the cost. This calculator does the conversion automatically. Set the basis to margin and it shows the equivalent markup straight away.
Why can’t I enter a margin of 100% or more?
The margin formula divides by 1 − margin% ÷ 100, which is zero at 100% and negative beyond it, so the sell price has no valid answer. If you need profit that large relative to cost, switch the basis to markup, which has no ceiling.