Markup Calculator
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This markup calculator finds your selling price from cost and markup, your markup from cost and price, or your cost from price and markup. A $60.00 cost with a 50% markup sells for $90.00, which is a 33.3% margin. The margin shows beside every result, so you can see how the two differ.
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How to use the markup calculator
- Choose what you already know: cost and markup, cost and selling price, or selling price and markup.
- Enter those two numbers.
- Read the missing figure, plus the profit and the margin. Open “Quantity” to see totals for several items.
How markup is calculated
Selling price from cost and markup
Price = Cost × (1 + Markup % ÷ 100)
Markup from cost and price
Markup % = (Price − Cost) ÷ Cost × 100
Cost from price and markup
Cost = Price ÷ (1 + Markup % ÷ 100)
Margin (shown for comparison)
Margin % = (Price − Cost) ÷ Price × 100
Markup Calculator examples
Example 1: cost and markup
A product costs $80.00 and you add a 25% markup. Price = $80.00 × 1.25 = $100.00. Profit is $20.00, which is a 20% margin.
Example 2: cost and selling price
You pay $50.00 and sell for $75.00. Profit is $25.00. Markup = $25.00 ÷ $50.00 = 50%. Margin = $25.00 ÷ $75.00 = 33.33%.
Example 3: finding the cost
You sell at $120.00 with a 20% markup. Cost = $120.00 ÷ 1.2 = $100.00, so profit is $20.00 per item.
Markup and margin side by side
On a $100.00 cost. Notice that margin is always lower than markup, and that a 100% markup is a 50% margin.
| Markup | Selling price | Margin |
|---|---|---|
| 10% | $110.00 | 9.09% |
| 20% | $120.00 | 16.67% |
| 25% | $125.00 | 20% |
| 30% | $130.00 | 23.08% |
| 40% | $140.00 | 28.57% |
| 50% | $150.00 | 33.33% |
| 75% | $175.00 | 42.86% |
| 100% | $200.00 | 50% |
Margin to markup: the conversion table
If a price target is stated as a margin, you need the markup that produces it. The formula is markup = margin ÷ (100 − margin). On a $100.00 cost:
| Target margin | Markup needed | Selling price on a $100 cost |
|---|---|---|
| 10% | 11.11% | $111.11 |
| 20% | 25% | $125.00 |
| 25% | 33.33% | $133.33 |
| 30% | 42.86% | $142.86 |
| 40% | 66.67% | $166.67 |
| 50% | 100% | $200.00 |
| 60% | 150% | $250.00 |
To go the other way, margin = markup ÷ (100 + markup). A 50% markup gives 50 ÷ 150 = 33.33% margin, which is why a $60.00 item at a 50% markup sells for $90.00 with a 33.3% margin.
Setting a price from a target margin
If you know the margin you want, divide the cost by one minus the margin. A $60.00 cost and a 40% margin: $60.00 ÷ (1 − 0.40) = $100.00. The markup that gives is 66.67%. Adding 40% to cost would give $84.00, a margin of only 28.57%.
Cost-plus pricing and what to include in cost
Adding a markup to cost is called cost-plus pricing. It is simple and quick, but it only works if the cost is complete. Count what you pay for the item, plus shipping in, packaging, payment fees and any share of overhead you want the price to cover. A markup applied to an incomplete cost gives a profit that looks healthier than it is. It also ignores what customers are willing to pay, so use it as a floor to check, not as the only way to set a price.
Mistakes that erase your profit
- Treating markup as margin. Adding 30% to cost gives a 23.08% margin, not 30%. If you promised a margin, convert it with the table above.
- Discounting off the marked-up price. A $80.00 item at a 25% markup sells for $100.00. A 20% discount takes it to $80.00, which is back to cost, so the sale earns nothing. Check the discount calculator before you run a sale.
- Forgetting fixed costs. Markup covers the cost of the item. Rent, wages and software come out of the profit, so profit per item is not the same as take-home.
Markup Calculator questions
What is markup?
Markup is how much you add to your cost to get the selling price, written as a percentage of the cost. Buy something for $80, add 25% ($20) and you sell it for $100.
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. The same sale gives two different percentages: selling a $80.00 item for $100.00 is a 25% markup but only a 20% margin, because the $20.00 profit is 25% of $80.00 and 20% of $100.00. Use the profit margin calculator to work from margin.
How do I calculate the selling price from cost and markup?
Multiply the cost by one plus the markup as a decimal. A $80.00 cost with a 25% markup is $80.00 × 1.25 = $100.00.
How do I find the markup from cost and price?
Subtract the cost from the price, divide by the cost, then multiply by 100. Cost $50.00 and price $75.00: ($75.00 − $50.00) ÷ $50.00 = 0.5, a 50% markup.
What markup do I need for a 30% margin?
Markup = margin ÷ (100% − margin). For a 30% margin that is 30 ÷ 70 = 42.86%. A common mistake is to add 30% to cost, which only gives a 23.08% margin.
What does 100% markup mean?
It means you double the cost. A $100.00 cost with a 100% markup sells for $200.00. The profit equals the cost, and the margin is 50%.
What is a 40% markup on $50?
$50.00 × 1.40 = $70.00. The profit is $20.00, and the margin is 28.57%.
Can markup be more than 100%?
Yes. Selling something that cost $20.00 for $70.00 is a 250% markup. Margin can never reach 100%, because the selling price is always more than the profit, but here it is 71.43%.
What selling price gives me a 40% margin?
Divide the cost by one minus the margin. At a $60.00 cost and a 40% margin: $60.00 ÷ 0.60 = $100.00. That is a 66.67% markup, not 40%.
How do I convert margin to markup?
Markup % = Margin % ÷ (100 − Margin %) × 100. A 25% margin is 25 ÷ 75 = 33.33% markup. The table above shows common conversions.
Does markup include overhead and tax?
Only if you include them in the cost. This calculator treats cost as the number you enter, so add shipping, packaging, fees and any overhead you want to cover before you apply a markup. Sales tax is separate and isn’t part of your price or profit.
What this calculator doesn’t do
- It calculates price, markup and margin from the numbers you enter. It doesn’t know your overhead, taxes or fees unless you include them in the cost.
- It shows profit per item and totals only. It doesn’t model discounts, returns or volume pricing.
- It isn’t tax or accounting advice.
Results are estimates for planning, not financial advice. The methodology page explains how every calculator here is built and checked.