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 cost | Price €91 · margin 23.1% |
| 30% margin on price | Price €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.
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.