How does Markup differ from Margin?

Markup is profit relative to cost (Profit / Cost), whereas Margin is profit relative to selling price (Profit / Price).

Markup Calculator

Calculate unit selling price and profit margin from cost and markup percentage.

Live

Parameters

R Reset

Unit Cost ($)The wholesale or production cost per unit.

$50.00

$0.01$10,000,000.00

Markup (%)The percentage added to unit cost to determine selling price.

30.0%

0.0%1,000.0%

Analytics Dashboard

Selling Price

$65.00

Gross Profit$15.00

Gross Margin23.08%

Educational estimate. Not financial advice.

Result Interpretation

Markup ratio of 30.0% aligns with commercial retail pricing guidelines under Industry Pricing Standards.

Mathematical Explanation

\text{Price} = \text{Cost} \times \left(1 + \frac{\text{Markup \%}}{100}\right)

With cost $50 and markup 30%, price is $65 earning gross profit of $15 (23.08% margin).

Set retail pricing easily by modeling cost markups and unit profits.

Input variables:

Understand how markup relates to unit cost, how it increases selling prices, and why it differs from margins.