Margin shows what share of the selling price remains after the costs you entered.

Gross profit: $65.00
Profit margin: 52.0%
Markup: 108.33%
Total costs: $60.00

Selling price
$125.00
Cost of goods
$48.00
Other costs
$12.00
Total costs
$60.00

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Pricing

Margin vs Markup Calculator

Use the same numbers to see how margin and markup tell two different pricing stories.

This page is built for sellers and freelancers who need a fast answer to the most common pricing question: whether they should think in markup, margin, or both.

How to use this page

Start with your best current estimate, adjust the inputs until the result feels realistic, and use the related tools below when you want to pressure-test price, profit, or payout from another angle.

Estimate profit, margin, and markup from one sale price and cost stack.

Use the calculator with the examples below to test ideas quickly and come back to the same setup later.

Worked examples

Start from a realistic scenario

Each example opens the same calculator with shareable URL state.

Product margin vs markup

A $125 selling price with $60 of total cost shows the gap between margin and markup clearly.

$65.00gross profit

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Service package comparison

A larger project price makes it easier to compare how each metric frames the same profit dollars.

$750.00gross profit

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FAQ

Quick answers

Short answers for the questions that usually come up first.

Why do margin and markup look so different on the same sale?

Margin uses the final selling price as the base, while markup uses total cost as the base, so the same dollars of profit produce different percentages.

Which one should I use when setting price?

Use whichever metric your business already manages around, but check both when you want a fuller view of pricing health.