Markup vs Profit Margin Calculator
Enter your cost price and selling price to calculate your profit, markup percentage and profit margin percentage.
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Markup and Margin are not the same
Markup tells you how much you added to your cost price to arrive at your selling price.
Profit margin tells you what percentage of your selling price is profit.
Profit Margin: Profit ÷ Selling Price × 100
Markup vs Profit Margin Calculator for Small Businesses
Markup and profit margin are two important pricing calculations, but they are not the same thing. This free Cape Portal calculator helps South African small businesses quickly see the difference using a cost price and selling price.
Why Markup and Margin Can Be Confusing
A business may calculate how much to add to its cost price and call that percentage its margin. However, markup is calculated from the cost price, while profit margin is calculated from the selling price.
For example, if something costs R500 and you sell it for R750, the profit is R250. The markup is 50%, while the profit margin is 33.33%.
What Does Markup Mean?
Markup shows how much the selling price has been increased above the cost price. It can be useful when setting selling prices for products, materials or services.
What Does Profit Margin Mean?
Profit margin shows the profit as a percentage of the final selling price. It can help a business understand how much of its sales price represents profit before other business expenses are considered.
How to Use This Calculator
- Enter your cost price.
- Enter your selling price.
- Select Calculate.
- Review your profit, markup and profit margin.
Useful for South African Small Businesses
This calculator can be useful for retailers, contractors, tradespeople, wholesalers, service businesses and other small businesses that need a quick way to check pricing before quoting or selling.