Markup Calculator
Convert between markup and profit margin
What is Markup vs. Margin?
Markup and margin are two ways of expressing the same profit in percentage terms, but they use different bases. Markup is calculated on cost, while margin is calculated on selling price. Confusing the two is one of the most common pricing mistakes in business.
Key Terms
The percentage added on top of the cost price to determine the selling price. A 50% markup on a $100 cost means selling at $150.
The percentage of the selling price that represents profit. A $150 selling price with $100 cost gives a 33.3% margin.
The total cost to produce or acquire a product, used as the base for markup calculations.
The final price charged to customers, determined by applying a markup to the cost price.
Formulas Used
Divide the profit by the cost and multiply by 100 to express the markup as a percentage of cost.
Divide the profit by the selling price and multiply by 100 to express the margin as a percentage of revenue.
Multiply the cost by one plus the markup percentage to calculate the target selling price.
Three simple steps
Enter cost and price
Input your cost price and selling price, or enter a target markup percentage to find the selling price.
Calculate markup and margin
The calculator computes both markup percentage and profit margin so you can compare them side by side.
Review your pricing
See the relationship between markup and margin and adjust your pricing strategy accordingly.
Built for founders like you
Retail pricing
Set product prices that achieve your target margin using the correct markup percentage.
Wholesale negotiations
Quickly convert between markup and margin when discussing pricing with suppliers or distributors.
Menu or catalog pricing
Price items consistently across your product line by applying standard markup percentages.
Markup vs. profit margin explained
Markup and profit margin are related but different. Markup is the percentage added to cost to arrive at the selling price. Margin is the percentage of the selling price that is profit. The same dollar amount of profit produces different percentages depending on which formula you use.
For example, if a product costs $60 and sells for $100, the markup is 66.7% (based on cost) while the margin is 40% (based on selling price). Confusing the two is one of the most common pricing mistakes in business.
As a rule: markup is always higher than margin for the same transaction. A 50% markup equals a 33.3% margin. A 100% markup equals a 50% margin. Understanding this relationship is essential for setting prices that actually achieve your profitability targets.
Common questions
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How do I convert markup to margin?+
What markup should I use for my business?+
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