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Margin and markup are not the same

4 min readReviewed on 3 November 2026General calculation · any country

In short

  • Margin is measured on the selling price; markup is measured on the cost.
  • A 30% markup only gives a 23% margin.
  • To hit a target margin, divide the cost by (1 − margin).

The difference

Both figures measure the same thing, what you make on each sale, but against a different base:

  • Margin = (price − cost) ÷ price. Measured on the selling price.
  • Markup = (price − cost) ÷ cost. Measured on the cost.

Because the price is always higher than the cost, markup is always higher than margin for the same sale.

A worked example

A product costs you €70.

Example calculated with our calculator
30% markup on costPrice €91 · margin 23.1%
30% margin on pricePrice €100 · markup 42.9%

If you wanted a 30% margin but applied a 30% markup, each unit leaves you €9 less than planned.

How to price for a target margin

Divide the cost by (1 − margin). For a 30% margin: 70 ÷ 0.70 = €100. If you prefer to work with markups, the markup you need is margin ÷ (1 − margin): for a 30% margin, a 42.9% markup.

Note: use the full cost of each unit and prices excluding sales tax. If you sell on platforms, deduct their fees too.

Work it out with your figures

The calculator gives you price, margin and markup at once, with an equivalence table.

Open the calculator

Sources and review. Our own calculation with the Numveria price, margin and markup calculator. This guide does not cite external data. Reviewed on 3 November 2026.

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