Margin and Markup Calculator UK | GlobalCalc

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Inputs

You know

Cost

The margin %, markup % or price

Results update as you type

Results

Price

£100.00

Profit per unit—

Margin—

Markup—

Price as a multiple of cost—

The common mistake—

Reviewed September 2026. Management accounting arithmetic: the same formulas in every market, in your own currency. The FRC expects alternative performance measures such as EBITDA to be reconciled to the nearest statutory figure. Maintained by Adam Formosa.

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About margin and markup

Method

How the margin and markup calculator works

Markup is profit as a percentage of cost. Margin is profit as a percentage of price. Same money, different denominator, and the numbers diverge fast: a 50% markup is a 33.3% margin, and a 100% markup is a 50% margin.

The practical error runs one way. A shop wanting a 40% margin who applies a 40% markup ends up with a 28.6% margin — a quarter of the intended profit gone, on every sale, usually undetected until the year-end accounts.

Enter any two of cost, price and either percentage; the rest follow.

Formula: margin = profit/price; markup = profit/cost; margin = markup/(1+markup)

Data

Worked examples

Inputs	Price	Note
Cost 60, target margin 40%	£100.00	price 100
Cost 60, markup 40%	£84.00	price 84 — only a 28.6% margin
Cost 60, price 100	£100.00	40% margin, 66.7% markup

FAQ

Frequently asked questions

What is the difference between margin and markup?

Markup is profit over cost; margin is profit over price. A 50% markup is a 33.3% margin.

How do I convert markup to margin?

margin = markup / (1 + markup). A 40% markup gives 0.4/1.4 = 28.6%.

Why does confusing them cost money?

Because applying your target margin as a markup underprices every sale. A 40% target applied as markup delivers 28.6%.

Which should I price on?

Margin, because it relates directly to the revenue line in your accounts. Markup is the easier arithmetic at the counter.

Can margin exceed 100%?

No — profit cannot exceed the price. Markup has no upper limit.

Sources

Where these figures come from

Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardised
Financial Reporting Council — the UK accounting and audit regulator

Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.