Markup vs Margin Calculator
Margin is profit ÷ selling price. Markup is profit ÷ cost. Use this to price products, menus or services without mixing them up.
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Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost.
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See Website Plans →Frequently asked questions
What is the difference between markup and margin? ▾
Both compare profit to something else. Markup compares profit to your cost. Margin compares profit to the final selling price. A 50% markup is not the same as a 50% margin.
How do I get a selling price from a target margin? ▾
Choose “Target margin %”, enter your cost and desired margin. We compute price as cost ÷ (1 − margin), which is the standard gross-margin pricing formula.
Does this include VAT or taxes? ▾
No — enter cost and price consistently (both excluding VAT or both including VAT). For Portuguese IVA math, use our IVA calculator (Portugal).
Is this financial advice? ▾
This is a quick educational calculator. For tax, payroll and formal accounts, speak to a qualified accountant.
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