Markup vs Margin: The Difference That Costs Sellers Money
Same profit, two different percentages — and why confusing them shrinks your prices.
4 min read
Step by step
- Markup compares profit to cost: profit ÷ cost × 100.
- Margin compares profit to price: profit ÷ price × 100.
- A $100 cost sold at $150 is 50% markup but 33.33% margin.
- To hit a target margin, price = cost ÷ (1 − margin ÷ 100).
Key takeaway: Markup is always the larger number for the same profit.
Do it automatically
Convert between cost, markup, margin and selling price.
Open the Price Markup Calculator