Free tool · pricing
Margin vs markup calculator
The same 20% gives two different prices. Enter your cost and a percentage to see the sell price with a markup and with a margin, side by side.
Both formulasConversion tableNo sign-up
Sell price from cost
With markup1,200.00profit 200.00 · margin 16.7%
With margin1,250.00profit 250.00 · markup 25.0%
A 20% margin brings 50.00 more than a 20% markup on the same cost.
The formulas
Markup is on cost. Margin is on the sell price.
markup: sell = cost × (1 + p)
margin: sell = cost ÷ (1 − p)
margin = markup ÷ (1 + markup) · markup = margin ÷ (1 − margin)
margin: sell = cost ÷ (1 − p)
margin = markup ÷ (1 + markup) · markup = margin ÷ (1 − margin)
Conversion table
| Markup | Equals margin | Sell on cost 1,000 |
|---|---|---|
| 10% | 9.1% | 1,100 |
| 15% | 13.0% | 1,150 |
| 20% | 16.7% | 1,200 |
| 25% | 20.0% | 1,250 |
| 33.3% | 25.0% | 1,333 |
| 50% | 33.3% | 1,500 |
| 100% | 50.0% | 2,000 |
In freight sales the two words are often mixed up. If your manager asks for a 20% margin and you add 20% to the cost, you are 50 short on every 1,000 of cost.
For freight forwarders
QUAY keeps margin and markup apart.
Pick margin or markup, enter your buy costs per kilo or as totals, and QUAY shows the sell price, the profit and the other percentage before you send the PDF quote.
Is 25% markup the same as 20% margin?
Yes. On a cost of 1,000 both give a sell price of 1,250 and a profit of 250.
Which one should I quote with?
Use what your company reports on. Most finance teams track margin, because it reads directly as a share of revenue.
Can margin reach 100%?
No. Margin is a share of the sell price, so it stays below 100%. Markup has no upper limit.