Inputs
I know the…
Currency
$
%
Result
Selling price
$64.00
Profit per unit
$24.00
Gross margin
37.5%
Markup
60.0%
Key takeaways
- Markup = (price − cost) ÷ cost. Margin = (price − cost) ÷ price.
- Selling price = cost × (1 + markup): a $40 cost with 60% markup sells for $64.
- Markup is always bigger than margin: 50% markup = 33.3% margin, 100% markup = 50% margin.
- Include fees, shipping and packaging in cost, or the margin you see is higher than the margin you keep.
Selling on more than one channel? Hustlay shows real margin per shop or product line after fees and shared costs.
Track margin per projectConversion table
Markup to margin conversion
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20.0% |
| 30% | 23.1% |
| 40% | 28.6% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
Margin = markup ÷ (1 + markup). Use the calculator above for any other value.
How it works
Markup vs. margin, with one example
Markup answers “how much do I add on top of my cost?”. Margin answers “how much of each sale do I keep?”. Both use the same profit — they just divide it by a different number.
Say a candle costs you $8 to make and ship, and you sell it for $20. Profit is $12. Markup is $12 ÷ $8 = 150%. Margin is $12 ÷ $20 = 60%. If the marketplace then takes $2 in fees, cost is really $10: markup falls to 100% and margin to 50%.
Related tools: side hustle profit calculator · Stripe fee calculator · shared expense split calculator
FAQ
