🇨🇦 CANADA · BUSINESS CALCULATORS

Markup vs Margin Calculator — Canada

Stop confusing markup and margin — they're not the same number. Enter cost and price to see both, and convert between them instantly.

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Enter Cost & Price
CA$
What you pay to produce or acquire one unit.
CA$
What you charge the customer.
Or calculate from markup %
Enter a markup % to see the equivalent margin %.
Markup vs Margin Results
Gross Margin %
—
Profit ÷ selling price — used in financial reporting
Markup %
—
Profit ÷ cost price — used in pricing decisions
Profit per Unit
—
Selling price minus cost
Markup → Equivalent Margin
—
From the markup % you entered above

Disclaimer Markup and margin are both correct ways to measure profitability — they measure different things. Always clarify which metric you're using when discussing pricing with suppliers, buyers, or accountants.

Firm-economics numbers work as a set — the ltv calculator looks at one side of the ledger, and the monthly recurring revenue calculator completes it.

Frequently Asked Questions

What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Example: if you buy for $60 and sell for $100, your profit is $40. Markup = $40/$60 = 67%. Margin = $40/$100 = 40%. The numbers describe the same profit from different perspectives.
Why does it matter which one I use?
Confusing the two is a costly pricing mistake. If your target is 40% margin but you apply a 40% markup, you actually achieve only 28.6% margin — you're underpricing by over 10 percentage points. Always clarify which metric a price list or supplier quote is using.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). For a 50% markup: 0.50 ÷ 1.50 = 33.3% margin. To go the other way — margin to markup: Markup = Margin ÷ (1 − Margin). For a 40% margin: 0.40 ÷ 0.60 = 66.7% markup.
Which metric do accountants and investors use?
Accountants and investors use gross margin (profit/revenue) because it standardizes profitability against revenue. Markup is more common in operations and purchasing because it starts from cost. Financial statements always report margin.

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