Case &ContrastFree calculators

Pricing & unit economics

Margin & Markup Calculator

Use one cost and selling price to compare unit profit, margin on price and markup on cost.

28 / DISTINGUISH THE DENOMINATORS

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Starting values are illustrative. Use your own costs, rates and assumptions.

INPUT GROUP 01

One sale, one cost basis

Check the assumptions before acting on a result.

Read the method and example

YOUR CALCULATION

Margin uses selling price; markup uses the entered cost.

Price less entered unit cost

$40.00

Margin on selling price

40.00%

Markup on cost

66.67%

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Saving is optional and stays on this device. Unsaved edits are not kept when you leave. CSV includes every input and the current results.

Illustrative inputs loaded. Replace them with your own assumptions.

How the margin & markup calculator works

Price less entered unit cost gives unit profit before any omitted charges. Margin percent divides that profit by selling price; markup percent divides it by cost. The two percentages describe different denominators.

A zero selling price makes margin undefined. A zero cost makes markup undefined. Losses remain negative rather than being clamped to zero, and a free sale with positive cost can therefore show a −100% markup.

Use a consistent unit and currency. Payment fees, freight, returns, overhead and tax appear only if included in the entered cost or price basis. This is a basic comparison, not a recommended selling price or assurance of realized profit.

Worked example

A 60 unit cost and 100 selling price give 40 unit profit, 40% margin and approximately 66.667% markup. At a 120 selling price, profit is 60, margin is 50% and markup is 100%.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

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