What this calculator tells you
Markup and margin both measure profit, but they use different denominators. Mixing them up can turn a planned margin into an accidental discount.
When to use it
Use it when a supplier quotes markup, a marketplace asks for margin, or a colleague uses the two terms interchangeably.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
A 50 percent markup is not a 50 percent margin. It is a 33.3 percent margin.
Frequently asked questions
Which number should I use for pricing?
Margin is usually more useful for evaluating the business because it relates profit to revenue. Markup is useful for supplier or cost-based pricing discussions.
Can markup be higher than 100 percent?
Yes. A product can be marked up by more than its cost. The corresponding margin will still remain below 100 percent.
Why does a small margin change matter?
Margin is a share of revenue. A few percentage points can make a meaningful difference in total profit at scale.
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