The Locolory toolkit / Business & Pricing
Markup vs Margin & Profit Calculator
Convert between cost, markup percentage, gross margin, and retail selling price.
Markup is profit divided by cost; gross margin is profit divided by selling price. They describe the same dollars from different bases.
- Key formula: Price = cost × (1 + markup), or cost ÷ (1 − margin). Editing cost, price, markup or margin recalculates the connected values.
Pricing calculations execute locally and are not stored.
Bidirectional pricing calculator
A 66.67% markup equals a 40.00% margin.
$40.00 profit
Discounted price: $100.00 · Profit: $40.00 · Remaining margin: 40.00%
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Good questions. Clear answers.
What is the difference between markup and margin?
Markup measures profit as a percentage of cost. Margin measures profit as a percentage of selling price, so the same transaction produces different percentages.
How do I convert target margin into selling price?
Divide cost by one minus the target margin expressed as a decimal. A 40% target margin on $60 cost produces a $100 price.
Can a discount turn a profitable item into a loss?
Yes. Discounts reduce selling price but do not reduce the original unit cost. The simulator shows the resulting dollar profit and gross margin.