Home›Business›Margin vs Markup Calculator
Never Confuse Them Again

Margin vs Markup Calculator — Same Profit, Different Number

Cost ₹100, markup 50%, selling price ₹150 — but that's only a 33.33% margin, not 50%. This tool converts between cost, price, margin, and markup, and shows exactly why they're not the same number.

🔍 Analyze Cost & Price

Markup = Profit ÷ Cost. Margin = Profit ÷ Selling Price. Same profit, different denominator.

📊 Result

Enter values and click Calculate
⚠️

Disclaimer: This calculator is for educational purposes only. It does not account for taxes, discounts, or additional costs beyond the single cost figure you enter. Consult a financial advisor or accountant for business pricing decisions.

Markup vs Margin — Clearly Defined

Markup is profit expressed as a percentage of cost. It answers: "How much did I add on top of what I paid?"

Markup % = (Selling Price − Cost) ÷ Cost × 100

Margin is profit expressed as a percentage of selling price. It answers: "What share of each sale is actually profit?"

Margin % = (Selling Price − Cost) ÷ Selling Price × 100

Markup is always a bigger number than margin for the same sale, because you're dividing the same profit by a smaller base (cost is always less than price when you're profitable).

The Conversion Table

Markup %Margin %Cost ₹100 → Selling Price
25%20.0%₹125
50%33.3%₹150
100%50.0%₹200
300%75.0%₹400

Notice margin approaches but never reaches 100%, while markup has no ceiling — this is why the two numbers diverge more as pricing gets more aggressive.

Frequently Asked Questions

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. The same rupee amount of profit gives two different percentages depending on which base you divide by — markup is always a higher number than margin for the same sale.
A 50% markup on a cost of 100 gives a selling price of 150 and a profit of 50. As markup, that is 50/100 = 50%. As margin, it is 50/150 = 33.3% — same profit, different denominator (cost vs price), so a different percentage.
Margin is generally more useful for pricing and profitability analysis because it directly tells you what percentage of every sale is profit. Markup is more common in retail and trade pricing conversations because it is calculated directly off your known cost. Know which one you are being asked for before quoting a number.
This varies widely — retail commonly runs 20-30% gross margin, services 30-50%, and software/SaaS businesses often see 60-80% gross margin due to low marginal cost per additional customer. These are general patterns, not universal rules.