Free calculator
Margin and markup are not the same number
A 50% markup is a 33% margin. Confusing the two quietly eats your profit on every sale.
The formula
Profit = price − cost · Margin % = profit ÷ price × 100 · Markup % = profit ÷ cost × 100
Worked example
| Input | Value |
|---|---|
| Cost to you (per unit) | $40.00 |
| Selling price (per unit) | $100.00 |
| Test a discount (optional) | $10.00% |
| Output | Value |
|---|---|
| Profit per unit | $60.00 |
| Discounted price (10%) | $90.00 |
| Profit per unit after discount | $50.00 |
| Profit lost per sale | $10.00 |
| Share of profit lost | 16.7% |
Things worth knowing
- Margin is what you keep per sale. Markup is what you add to cost. Only one of them belongs in a pricing decision.
- A 10% discount on a 60% margin product removes about 17% of your profit — check the number before you offer it.
Related
These are arithmetic tools, not financial advice. Currency symbols are for display only — the maths is currency-agnostic. Last reviewed: 2026-10-27.