What is the difference between markup and margin?

Markup is profit measured against cost, while margin is the same profit measured against the selling price. A item that costs 100 and sells for 150 has a 50% markup (50 ÷ 100) but only a 33.3% margin (50 ÷ 150). Margin is always smaller than markup for the same sale.

How do I calculate selling price from cost and markup?

Multiply the cost by the markup percentage to get the profit, then add it back: selling price = cost × (1 + markup ÷ 100). A cost of 80 with a 25% markup gives 80 × 1.25 = 100.

How do I convert markup to margin?

Use margin = markup ÷ (1 + markup). A 50% markup converts to 0.5 ÷ 1.5 = 33.3% margin. The reverse mode of this calculator does the conversion for you from any cost and price pair.

Can this calculator work backwards from a selling price?

Yes. Switch to 'Cost + price' mode, enter your cost and the price you charge, and it returns the implied markup percentage and the resulting margin, so you can check whether an existing price hits the profit you want.

What markup percentage should I use?

It depends on your sector. Grocery is often 10 to 25%, clothing 50 to 100% or more, and software-style products much higher because unit cost is tiny. Use the presets as starting points and compare the margin each one produces.

Is my pricing data sent anywhere?

No. Every calculation runs entirely in your browser using plain arithmetic. No costs, prices, or figures are ever uploaded or stored on a server.

Markup Calculator — Gera Tools

A markup calculator that turns your unit cost and a markup percentage into a selling price, the profit per unit, and the margin that price produces — and runs the same logic in reverse so you can check what an existing price actually earns you. It is built for shop owners, makers, freelancers, dropshippers, and anyone setting prices who needs to see markup and margin side by side instead of guessing.

How it works

Markup and margin are the two numbers people most often confuse, so this tool always shows both. Markup is your profit expressed as a percentage of what the item cost you. Margin is the same profit expressed as a percentage of the price you sell at. They are never the same figure, and margin is always the smaller of the two for a given sale — which is exactly why a healthy-looking markup can hide a thinner margin than you expected.

In forward mode you give a cost and a markup percentage. The calculator works out the profit as cost × markup ÷ 100, adds it to the cost to get the selling price, then derives the resulting margin as profit ÷ price. In reverse mode you give a cost and a selling price; it finds the profit as price − cost, then reports both the markup (profit ÷ cost) and the margin (profit ÷ price) that price implies. Every result panel shows the full working line by line and a cost-versus-profit doughnut chart, so the maths is never a black box. You can pick a currency symbol for readability or leave it neutral — the arithmetic is identical either way, because all inputs are figures you type, never live rates.

Worked example

Suppose a product costs you 80 to make and you want a 25% markup. The profit is 80 × 0.25 = 20, so the selling price is 100. That same 20 of profit measured against the 100 price is a 20% margin — noticeably lower than the 25% markup, which is the gap most people overlook. Now flip to reverse mode: enter a cost of 80 and a price of 120, and the tool reports a 50% markup with a 33.3% margin. Trying a few markup presets makes the trade-off obvious at a glance before you commit to a price.

Formula note

Forward: price = cost × (1 + markup ÷ 100), margin = (price − cost) ÷ price. Reverse: markup = (price − cost) ÷ cost, margin = (price − cost) ÷ price. To convert directly, margin = markup ÷ (1 + markup). All percentages are rounded for display only; the underlying calculation keeps full precision.

Everything is computed in your browser — no costs or prices are uploaded or stored.