Markup vs Margin Calculator NZ 2026

This calculator turns a product cost and a markup into a selling price, profit and profit margin, and clears up the confusion between markup and margin that causes so many pricing mistakes. Markup and margin sound similar and are easy to mix up, but they are different things, and getting them muddled can quietly destroy a business's profitability. Markup is the profit expressed as a percentage of the cost: if something costs $100 and you add a 50 percent markup, you sell it for $150. Margin is the same profit expressed as a percentage of the selling price: that same $50 profit on a $150 sale is a 33.3 percent margin. A retailer who thinks a 50 percent markup gives a 50 percent margin is overestimating their profit and may price too low to survive. This tool makes the relationship clear. You enter the cost of the item and the markup you want to apply, and the calculator returns the selling price, the dollar profit, the markup percentage and the resulting margin percentage, so you can see both numbers side by side. Use it to set prices that hit a target margin, to convert a supplier's markup into your real margin, or to check that your pricing covers costs and leaves the profit you actually need. As a quick reference, a 50 percent markup is a 33 percent margin, a 100 percent markup is a 50 percent margin, and a 25 percent markup is a 20 percent margin. Pricing is about more than cost-plus, factoring in competition, value and demand, but knowing your markup and margin is the essential foundation. This is a precise calculation to get that foundation right.

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$150.00
selling price
Profit$50.00
Markup50%
Margin33.3%

Markup is profit over cost; margin is profit over selling price. They are not the same. Add GST separately if required. A precise calculation.

How it works

The selling price is the cost increased by the markup percentage. The profit is the selling price minus the cost. The markup is profit as a percentage of cost, and the margin is the same profit as a percentage of the selling price, which is always lower than the markup.

Worked example

An item costing $100 with a 50 percent markup sells for $150, a $50 profit. That is a 50 percent markup but only a 33.3 percent margin, because the $50 profit is a third of the $150 selling price. Confusing the two would lead you to believe you make more profit than you really do.

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Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same dollar profit gives a higher markup figure than margin figure. A 50 percent markup, for example, is only a 33.3 percent margin.

How do I convert markup to margin?

Margin equals markup divided by one plus markup. A 50 percent markup is 0.5 divided by 1.5, or 33.3 percent margin. This calculator shows both at once so you never have to convert by hand or risk under-pricing.

Should I add GST to the selling price?

This calculator works with the GST-exclusive cost and price. If you sell to the public, add 15 percent GST to the selling price separately using the GST calculator, and remember GST is not part of your profit, it is collected for Inland Revenue.