Selling Price
$80
Markup Amount
$30
Profit Margin
37.5%
What is markup?
Markup is the amount added to the cost of a product to arrive at the selling price, expressed as a percentage of cost. For example, if a product costs $50 and you sell it for $75, the markup is $25, which is a 50% markup ($25/$50). Markup is used by businesses to cover overhead costs and generate profit.
How is markup different from margin?
Markup and margin both measure profitability but use different bases. Markup is calculated as a percentage of cost: (Selling Price - Cost) / Cost. Margin is calculated as a percentage of selling price: (Selling Price - Cost) / Selling Price. A 50% markup equals approximately a 33.3% margin. Markup is always higher than the equivalent margin.
How to convert between markup and margin?
To convert markup to margin: Margin = Markup / (1 + Markup). For example, 50% markup = 0.50 / 1.50 = 33.3% margin. To convert margin to markup: Markup = Margin / (1 - Margin). For example, 33.3% margin = 0.333 / 0.667 = 50% markup. These formulas help ensure consistent pricing regardless of which metric you prefer.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.
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