Margin vs Markup vs Profit Margin
The difference between margin, markup, and profit margin — formulas, examples, and when to use each.
6 min read · Last updated: July 13, 2026
Three different metrics
Margin (gross margin) = profit ÷ selling price. Markup = profit ÷ cost. Profit margin can mean gross, operating, or net depending on which costs you subtract. A 50% markup is NOT a 50% margin — on $100 cost, 50% markup sells at $150 with $50 profit, which is 33.3% margin ($50 ÷ $150).
Key formulas
Gross margin % = (Price − Cost) ÷ Price × 100. Markup % = (Price − Cost) ÷ Cost × 100. To convert markup to margin: Margin = Markup ÷ (1 + Markup). Retailers often think in markup; finance teams report margin.
When to use each calculator
Use the Margin Calculator when you know cost and price and want profit as a share of revenue. Use the Markup Calculator when setting price from cost. Use the Profit Margin Calculator for multi-line P&L with COGS and operating expenses. Use Break-Even and ROI calculators for volume and investment decisions.
Calculate margin and markup
The CalcVo Margin, Markup, and Profit Margin calculators show side-by-side comparisons with worked examples. Enter cost and price to see both metrics instantly.