Margin and Markup Calculator 2026 — 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. Regulation G requires any non-GAAP measure such as EBITDA to be reconciled to its closest GAAP equivalent.

All calculations run 100% in your browser. The calculator code does not submit your figures to GlobalCalc to obtain a result.

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 standardized
US Securities and Exchange Commission — the US securities regulator

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