Margin vs. markup
| Markup | Equals this margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
| 150% | 60% |
Margin is profit as a share of the selling price; markup is profit as a share of cost. Mixing them up is one of the most common pricing mistakes: pricing at a "50% markup" when you meant a 50% margin leaves you a third short.
Next: see how many sales cover your costs with the break-even calculator.
Calculated with standard formulas: margin = (price − cost) ÷ price; markup = (price − cost) ÷ cost. Educational information, not tax or legal advice. Results are estimates based on the information you enter; your situation may differ. Using this tool doesn't create a client relationship.