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Pricing sanity check

Markup vs Margin Calculator

Two numbers, two ratios — and twenty years of arguments. Drop in cost and sell price; we show profit, markup % and margin % so the same data tells the same story to everyone.

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Related calculators

Pricing

Cost + the margin you want → the right sell price (incl. VAT).

Break-even

Fixed costs ÷ contribution per unit → units to break even.

VAT

Add or strip VAT — 20%, 5% or 0%. Net + VAT + gross.

Common questions

Markup vs margin — which one is 'the right answer'?
Both, in different contexts. Margin is what investors and accountants look at (profit per pound of revenue). Markup is what merchandisers use to set prices (what you add to cost). The same product can have a 60% markup but only a 37.5% margin — the maths is just framed differently.
Can my markup be over 100%?
Yes — and routinely is, for services. A consultant charging £200 on a £20 cost has a 900% markup but a 90% margin. Margin caps at 100% (when sell price is infinite); markup has no ceiling.
How do I convert between markup and margin?
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin). 50% markup → 33.3% margin. 50% margin → 100% markup. Easy to mix up under pressure — paste this calc to settle the argument.
Why is this useful?
Buying decisions get made on markup ('we mark up 40%'); profitability gets reported on margin ('we run at 28% gross margin'). When the boardroom uses one and the warehouse uses the other, you discover problems too late. Pin them together with this calc.