How to use Margin and Markup Calculator
- Enter what one item costs you and the price you sell it for.
- The difference, margin and markup update together as you change the figures.
- Check the denominators: margin uses the selling price, while markup uses the cost.
Example: Margin and Markup Calculator
An item costs 80 and sells for 100. Compare the two percentage measures.
Options
- Cost per item
- Use the same per-item basis as the selling price. Include any direct costs you want the difference to reflect.
- Selling price per item
- The price before any tax or fees that this calculator does not include. It must be above zero because margin divides by this price.
Supported inputs and limits
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
The denominator changes the percentage
Checked 2026-09-28. Subtract cost from selling price once. Divide that difference by selling price for margin, or by cost for markup, then multiply by 100. The University of Maine Cooperative Extension explains this distinction with retail examples. This page treats the two entered numbers as unit amounts and does not estimate operating profit.
University of Maine Cooperative Extension, Basic Pricing Strategies for Small Businesses
Questions about Margin and Markup Calculator
Why are margin and markup different percentages?
They use the same difference but divide it by different amounts. Margin divides by selling price; markup divides by cost. With cost 80 and price 100, they are 20% and 25%.
What happens when I sell below cost?
The difference and both percentages are negative. For example, cost 120 and price 100 gives a 20.00 loss, a -20.00% margin and a -16.67% markup.
Does this show my business's net profit?
No. It compares only the cost and selling price you enter for one item. Add all relevant costs separately before treating the difference as profit.