Worked example
Check the method with simple numbers.
A $6 cost sold for $10 creates $4 profit: 40% margin and 66.67% markup.
Free calculator
Margin & markup calculator
See the difference between margin and markup before setting a price. Results are estimates, rounded to two decimals for money.
Planning estimate
40% margin · 66.67% markup40% target margin → $10.00. 50% markup → $9.00.
Assumptions
Know what the result includes.
- Cost includes every unit cost you intend to recover.
- Selling price is greater than zero.
- Target margin must be below 100%.
Common mistakes
Keep these out of the calculation.
- Calling markup margin
- Using revenue as profit
- Forgetting channel fees before checking the result
Useful questions
Why are the percentages different?
Margin divides profit by selling price; markup divides profit by cost.
What price gives a 30% margin on $3?
$4.29 after final display rounding.
Does this guarantee the product will sell?
No. It is a financial calculation, not a demand forecast.
Continue with context.
Read the related guide, then return with your own verified figures.
Understand margin versus markup