Margin Calculator
Calculate profit margin, markup, and selling price. Convert between margin and markup with reference tables and formulas.
Calculation Type
$
Selling Price
$83.33
$50.00
Cost
$33.33
Profit
40.0%
Margin
66.7%
Markup
Formulas
Margin
= (Price - Cost) / Price × 100
= ($83.33 - $50.00) / $83.33 × 100
= 40.0%
Markup
= (Price - Cost) / Cost × 100
= ($83.33 - $50.00) / $50.00 × 100
= 66.7%
Margin Reference Table (Cost: $50.00)
| Margin | Selling Price | Profit | Markup |
|---|---|---|---|
| 10% | $55.56 | $5.56 | 11.1% |
| 20% | $62.50 | $12.50 | 25.0% |
| 25% | $66.67 | $16.67 | 33.3% |
| 30% | $71.43 | $21.43 | 42.9% |
| 40% | $83.33 | $33.33 | 66.7% |
| 50% | $100.00 | $50.00 | 100.0% |
| 60% | $125.00 | $75.00 | 150.0% |
| 70% | $166.67 | $116.67 | 233.3% |
Markup Reference Table (Cost: $50.00)
| Markup | Selling Price | Profit | Margin |
|---|---|---|---|
| 10% | $55.00 | $5.00 | 9.1% |
| 25% | $62.50 | $12.50 | 20.0% |
| 50% | $75.00 | $25.00 | 33.3% |
| 75% | $87.50 | $37.50 | 42.9% |
| 100% | $100.00 | $50.00 | 50.0% |
| 150% | $125.00 | $75.00 | 60.0% |
| 200% | $150.00 | $100.00 | 66.7% |
| 300% | $200.00 | $150.00 | 75.0% |
Margin vs Markup
What's the Difference?
Margin is profit as a percentage of selling price.Markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin. They're related but not the same!
Quick Conversions
- 25% markup = 20% margin
- 50% markup = 33.3% margin
- 100% markup = 50% margin
- 200% markup = 66.7% margin
Industry Standards
Retail: 50-100% markup (33-50% margin). Restaurants: 200-300% markup on food. Software: 80-90% margins. Know your industry benchmarks.
Frequently Asked Questions
Margin vs Markup: What's the difference?
| Margin | Markup |
|---|---|
| Profit ÷ Selling Price | Profit ÷ Cost |
| Always less than 100% | Can exceed 100% |
| Used in financial reporting | Used in pricing |
Quick Conversion Reference
| Markup | Margin |
|---|---|
| 15% | 13% |
| 25% | 20% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
Formulas
- Margin: (Price - Cost) / Price × 100
- Markup: (Price - Cost) / Cost × 100
- Price from margin: Cost / (1 - Margin%)
- Price from markup: Cost × (1 + Markup%)
- Margin from markup: Markup / (1 + Markup)
- Markup from margin: Margin / (1 - Margin)
Industry Benchmarks
| Industry | Typical Margin |
|---|---|
| Grocery | 2-5% |
| Retail clothing | 40-60% |
| Restaurants | 3-9% net |
| Software/SaaS | 70-90% |
| Manufacturing | 25-35% |
| Consulting | 50-80% |