- 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?
- Markup shows '—' because markup divides by cost, and 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.
