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Markup and margin are not the same because they use different denominators.
Markup compares profit with cost. Margin compares profit with selling price.
Example one: If cost is $50 and markup is 40%, selling price is $70. Profit is $20, but margin is 28.57%, not 40%.
Example two: If cost is $50 and target margin is 40%, selling price is $83.33. Profit is $33.33.
This difference matters when sellers use markup language but make decisions based on margin goals.
Use the Markup Calculator at /tools/markup-calculator to price from markup, and the Profit Margin Calculator at /tools/profit-margin-calculator or Product Pricing Calculator at /tools/product-pricing-calculator to check margin.
Markup vs margin examples: why they are not the same
Markup and margin are often confused. Use examples to see why the same percentage gives different prices.
Markup compares profit with cost. Margin compares profit with selling price.
Example one: If cost is $50 and markup is 40%, selling price is $70. Profit is $20, but margin is 28.57%, not 40%.
Example two: If cost is $50 and target margin is 40%, selling price is $83.33. Profit is $33.33.
This difference matters when sellers use markup language but make decisions based on margin goals.
Use the Markup Calculator at /tools/markup-calculator to price from markup, and the Profit Margin Calculator at /tools/profit-margin-calculator or Product Pricing Calculator at /tools/product-pricing-calculator to check margin.
markup
Profit Margin
pricing
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Useful tools
Product Pricing Calculator
Calculate a product selling price from costs and target margin.
Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
Profit Margin Calculator
Calculate profit, cost, and margin for ecommerce, Shopify, Amazon, Etsy, or independent store products.
Amazon FBA Profit Calculator
Estimate Amazon FBA profit per unit from selling price, product cost, FBA fee, referral fee, and inbound shipping.
Break Even Calculator
Use this free break-even calculator to estimate break-even units, contribution margin, and revenue before launching or pricing a product.
Discount Calculator
Use this free discount calculator to find discount amount, final price, and savings before running a sale or promotion.