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margin = profit ÷ price · markup = profit ÷ cost

Margin and markup calculator

Enter any two of cost, selling price and profit. The page returns the third figure and both percentages, because margin and markup are never the same number.

Short answer: cost ₹100, sell ₹125 → profit ₹25, margin 20%, markup25%. The margin is a share of the sale, the markup is a share of the cost.

Why the two numbers disagree

Both describe the same ₹25. Dividing by the price gives 20%, dividing by the cost gives 25%. A business that prices everything at "cost plus 30%" earns a 23% margin; one that promises a "30% margin" must charge a 43% markup. Quoting the wrong one is a real pricing error, not a rounding difference.

Worked example

A retailer buys at ₹1,250 and wants a 35% margin. Price = cost ÷ (1 − 0.35) = ₹1,923.08, so the markup is 53.8%. Selling at ₹1,923 instead while quoting a 35% "markup" would leave only ₹673 of profit — a 26% margin — which is the error this page exists to prevent.

Margin and markup questions

What is the difference between margin and markup?

Margin is profit ÷ selling price; markup is profit ÷ cost. Buy at ₹100 and sell at ₹125 and the profit is ₹25, which is a 25% markup but only a 20% margin. They are different numbers from the same sale, and confusing them misprices a product.

Which one do I use for pricing?

Use markup when setting a price from a known cost (cost + 30%). Use margin when a target is quoted as a percentage of the sale (we need a 40% margin), because that constraint is on the price, not the cost.

How do I turn a margin into a markup?

Markup = margin ÷ (1 − margin) as decimals. A 20% margin is 0.2 ÷ 0.8 = 25% markup; a 50% margin is a 100% markup. Both are shown side by side here so the conversion never has to be remembered.

What if the profit is negative?

The page refuses a negative profit entered directly, but a price below cost still computes: the margin and markup come back negative, which is the honest reading of selling at a loss.

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