Why the terms are confused
Both margin and markup compare profit with another number, but they use different denominators. This means the percentages are not interchangeable.
Margin formula
Profit ÷ Selling Price × 100.
Markup formula
Profit ÷ Cost × 100.
Example
A product costing $50 and selling for $75 has $25 profit. Margin is 33.33%, while markup is 50%.
Use the Markup Calculator or Profit Margin Calculator to compare both.
Quick answer
Calculate selling price and profit from cost and markup percentage. Use the values and units shown by the tool, review the result, and keep the original inputs available if you need to compare another scenario.
Practical checklist
- Confirm the units, dates, rates or source values before calculating.
- Use consistent units and avoid rounding intermediate values too early.
- Run a second scenario when you need to understand how one input changes the result.
- For regulated fees, taxes, provider rules or professional decisions, verify the current official rule before relying on the result.
Try the related ToolViso tool
Use the Markup Calculator to check the calculation or conversion directly in your browser. No signup is required.
Frequently asked questions
How is markup calculated?
Subtract cost from selling price, divide the difference by cost, then multiply by 100.
What markup gives a 50% margin?
A 50% margin corresponds to a 100% markup on cost because the selling price is twice the cost.
Should shipping and fees be included in cost?
Include the costs that are relevant to your pricing decision. For a fuller profitability view, businesses often include landed cost, transaction fees or other direct costs instead of product purchase cost alone.