What is the difference between margin and markup?

Margin divides profit by the selling price. Markup divides profit by the cost. Markup percent is always higher than margin percent on the same job.

How do I work backwards from a margin?

Choose Cost and margin, type the cost and the margin you want, and the selling price updates. Margin must stay below 100%.

Does this include GST?

No. Use two GST-exclusive prices, or two GST-inclusive prices — don’t mix them.

Margin Calculator

Calculate gross margin, profit and markup from cost and selling price — or work backwards from the margin you want.

Margin is profit as a percent of the selling price. Markup is the same dollars as a percent of cost. Use whichever number you already have.

What do you know?

Cost

What it costs you, in AUD.Selling price

What the customer pays, in AUD.

Selling price

$65.00

You're making $25.00 gross profit on a $65.00 sale, which is a 38.46% margin.

Gross profit: $25.00
Margin: 38.46%
Markup: 62.5%

Numbers stay in this browser. The share link only includes cost, price, and rates — never names or invoices.

Worked example

A cost of $40 and a selling price of $65 is $25 gross profit. Margin is 25 ÷ 65, about 38.46%. Markup is 25 ÷ 40, which is 62.5% — the same dollars, two different percentages. Switch to Cost and margin if you want the selling price instead.

FAQ

What is the difference between margin and markup?: Margin divides profit by the selling price. Markup divides profit by the cost. Markup percent is always higher than margin percent on the same job.
How do I work backwards from a margin?: Choose Cost and margin, type the cost and the margin you want, and the selling price updates. Margin must stay below 100%.
Does this include GST?: No. Use two GST-exclusive prices, or two GST-inclusive prices — don’t mix them.