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Markup vs Margin

Turn a cost into a price by markup or by target margin, and see why the two are not the same number.

Enter a cost to see results.

Assumptions

  • Margin is profit as a share of the PRICE; markup is profit as a share of the COST. A 20% markup is a 16.7% margin. To net a 20% margin you need a 25% markup.

Common questions

What markup do I need for a 30% margin?

Markup = margin ÷ (1 − margin). For 30%: 0.30 ÷ 0.70 = 42.9% markup.

Planning numbers. Confirm quantities with your supplier, spec and local conditions before ordering.