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Markup Calculator

Convert between markup and profit margin

Choose how you want to calculate your markup
What you pay to acquire or produce the item
Desired percentage to add on top of cost
Understanding

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
Markup

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.

Profit Margin

The percentage of the selling price that represents profit. A $150 selling price with $100 cost gives a 33.3% margin.

Cost Price

The total cost to produce or acquire a product, used as the base for markup calculations.

Selling Price

The final price charged to customers, determined by applying a markup to the cost price.

Formulas Used
Markup
Markup % = ((Selling Price − Cost) ÷ Cost) × 100

Divide the profit by the cost and multiply by 100 to express the markup as a percentage of cost.

Margin
Margin % = ((Selling Price − Cost) ÷ Selling Price) × 100

Divide the profit by the selling price and multiply by 100 to express the margin as a percentage of revenue.

Selling Price
Selling Price = Cost × (1 + Markup ÷ 100)

Multiply the cost by one plus the markup percentage to calculate the target selling price.

How it works

Three steps.No guesswork.

01

Enter cost and price

Input your cost price and selling price, or enter a target markup percentage to find the selling price.

02

Calculate markup and margin

The calculator computes both markup percentage and profit margin so you can compare them side by side.

03

Review your pricing

See the relationship between markup and margin and adjust your pricing strategy accordingly.

Use cases

Built for founderswho move fast.

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.

Deep dive

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.

FAQ

Common questionsanswered.

What is the markup formula?+
Markup = ((Selling Price - Cost) / Cost) x 100. Margin = ((Selling Price - Cost) / Selling Price) x 100. They use the same numerator but different denominators.
How do I convert markup to margin?+
Margin = Markup / (1 + Markup). For example, a 50% markup (0.5) equals 0.5 / 1.5 = 33.3% margin. Conversely, Markup = Margin / (1 - Margin).
What markup should I use for my business?+
This depends on your industry and cost structure. Retail commonly uses 50-100% markup. Restaurants often use 200-300% on food. Software and digital products can use much higher markups due to low marginal costs.

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