Markup Calculator
Calculate selling price from cost and markup, find your margin from price and cost, or compare markup vs margin side by side. Enter your own numbers — works for any currency.
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How to Use This Calculator
Tab "Find Selling Price"
Enter your cost per unit and your desired markup percentage. The calculator shows the selling price, profit per unit, and the equivalent profit margin.
Tab "Find Markup %"
Enter the cost per unit and the selling price. The calculator works backwards to show your markup percentage, margin percentage, and profit per unit.
Tab "Markup vs Margin"
Enter cost and selling price to see markup and margin side by side. A conversion table shows common markup-to-margin equivalents so you can quickly translate between the two.
The Formulas
Selling Price = Cost × (1 + Markup% / 100)
Markup Percentage:
Markup% = (Selling Price − Cost) / Cost × 100
Margin Percentage:
Margin% = (Selling Price − Cost) / Selling Price × 100
Converting Markup to Margin:
Margin = Markup / (1 + Markup) — both as decimals
Converting Margin to Markup:
Markup = Margin / (1 − Margin) — both as decimals
All calculations use standard business mathematics. No country-specific tax rates are applied.
Worked Examples
Example 1 — Cost $40, 60% markup
A retailer buys a product for $40 and wants a 60% markup.
Calculation: Selling Price = $40 × (1 + 0.60) = $40 × 1.60 = $64. Profit = $64 − $40 = $24.
Example 2 — Cost $25, selling price $45
A seller knows the cost ($25) and the price they charge ($45) and wants to know the markup and margin.
Markup = ($45 − $25) / $25 × 100 = 80%. Margin = ($45 − $25) / $45 × 100 = 44.4%.
Example 3 — The confusion: "50% margin" vs 50% markup
A common mistake is treating markup and margin as the same number. They are not.
With 50% markup on $100 cost: Selling Price = $100 × 1.50 = $150. But for a 50% margin, you need Selling Price = Cost / (1 − 0.50) = $100 / 0.50 = $200. Confusing the two means under-pricing by $50 per unit.
Markup vs Margin: What is the Difference?
Markup is the percentage of cost that becomes profit. Margin is the percentage of selling price that is profit. Because selling price is always larger than cost (assuming a profit), markup is always a higher number than margin for the same transaction.
Both describe the same profit in absolute terms, but from different perspectives:
- Markup answers: "How much did I add on top of my cost?"
- Margin answers: "What fraction of revenue is profit?"
Conversion Table
| Markup % | Margin % | Multiplier |
|---|---|---|
| 25% | 20.0% | 1.25× cost |
| 50% | 33.3% | 1.50× cost |
| 100% | 50.0% | 2.00× cost (keystone) |
| 200% | 66.7% | 3.00× cost |
The relationship is non-linear. Doubling the markup does not double the margin. Use the "Markup vs Margin" tab above to convert any pair of values instantly.
Frequently Asked Questions
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