Canonical formula calculator
MARKUP vs MARGIN
Convert between markup and margin — and stop pricing yourself short.
Worked example
How the number is worked out
A furniture maker who adds 50% to cost and assumes that means a 50% margin.
Starting from
Working
A 50% markup is a 33% margin. The two are different questions about the same sale — markup is measured against what it cost you, margin against what the customer paid — and confusing them overstates what a sale keeps by half.
What this tells you
Markup and margin sound interchangeable but they are not. Markup is profit measured against cost; margin is profit measured against revenue. A 50% markup is only a 33.3% margin. This calculator converts between the two so you can price deliberately.
When to use it
Use this any time you are setting prices and your supplier, accountant, or competitor quotes one of the two numbers. Convert to the other before deciding. The single most common pricing mistake is treating markup as margin and ending up short on every sale.
What it doesn’t tell you
This calculator tells you the relationship between markup and margin but not whether your specific price is correct. The right markup depends on your costs, your market, your customer willingness to pay, and your operating expenses. This is a translation tool, not a pricing strategy.
Reckon it, don’t just calc it
A calculator gives you today’s number. Reckon takes your plan to make your own money and checks it against what’s real — your margin, your price, what it takes to hit the take-home you want. No AI, no guessing — the same input always gives the same answer.