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Finance

Markup vs margin calculator

Convert between cost, price, margin and markup. The two percentages are not the same number.

Margin and markup are confused constantly, and the confusion always costs money in the same direction: a 50 percent markup is only a 33 percent margin. This shows both from the same two numbers.

Margin on price

40%

Markup on cost

66.7%

Profit per unit

CHF 40.00

Price multiplier

1.67

Calculado al instante en su navegador · no se envían datos

Cómo funciona

  1. 1Enter what the item or hour costs you.
  2. 2Enter what you charge for it.
  3. 3Read both percentages side by side.

Para quién es

  • •Setting a retail or resale price
  • •Checking a supplier quote
  • •Explaining a price to a client

Consejos de experto

  • Margin can never reach 100 percent. Markup can exceed it without limit.
  • Agree which of the two your team means before setting a target.

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