- Markup or margin? They're not the same.
- Same numerator, different denominator. Markup = profit ÷ cost (multiplier on your cost). Margin = profit ÷ revenue (slice of the sale). Same dollar profit. Different math. If you have a cost and want to set a price, use markup. If you have a price and want to know what fraction of the sale is profit, use margin. Need margin instead? Use the Profit Margin Calculator.
- What's the formula?
- Selling price = Cost × (1 + Markup% / 100). Profit = Price − Cost. Margin% = Profit ÷ Price × 100. Markup% = Profit ÷ Cost × 100. The calculator shows all four side-by-side so you never have to convert between them.
- Why does a 100% markup equal a 50% margin?
- Because the denominators differ. If your cost is $100 and you mark it up 100%, you double it — price is $200 and profit is $100. Profit ÷ cost = 100 ÷ 100 = 100% (markup). Profit ÷ price = 100 ÷ 200 = 50% (margin). Same $100 profit, two perfectly valid percentages.
- How do I convert between markup and margin?
- Margin% = Markup% ÷ (1 + Markup%). Markup% = Margin% ÷ (1 − Margin%). Useful when a competitor quotes one and you think in the other. A 50% markup is a 33.33% margin. A 100% markup is a 50% margin. A 300% markup is a 75% margin.
- What if my selling price is below cost?
- Profit is negative and markup is negative. The calculator shows the loss honestly with a soft note instead of hiding it. You're selling at a loss — useful information when you're trying to clear inventory or match a competitor's price.
- What if cost is zero?
- Margin shows '—' because dividing by zero is undefined. The calculator never returns NaN or Infinity. It tells you what input it needs greater than zero and waits.
- Is there a catch?
- There isn't one. Salesforce CPQ wraps this in a $75/seat product. Then there's the Free Trial Industrial Complex — fifty tools that gate the answer behind an email signup. Markup math is one division. You shouldn't need a seat license to do it.
