Margin & Markup
Turn a cost and selling price into profit, profit margin and markup — three numbers that are easy to confuse. Margin is profit over price; markup is profit over cost.
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Worked example
Profit: $40.00 · Margin: 40% · Markup: 66.666667%
How it’s solved
Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.
- Same profit, two views: margin is profit over the selling price; markup is profit over the cost.
- Profit = price − cost
$100.00 − $60.00 = $40.00 - Margin = profit ÷ price × 100
$40.00 ÷ $100.00 × 100 = 40% - Markup = profit ÷ cost × 100
$40.00 ÷ $60.00 × 100 = 66.666667%
Learn the method
Inputs
- Cost $
60 - Price $
100
Frequently asked
What's the difference between margin and markup?
Margin is profit as a percent of the selling price; markup is profit as a percent of the cost. The same profit gives different percentages.
A $60 cost sold for $100?
That's $40 profit — a 40% margin and a 66.67% markup.