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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.

All amounts displayed in selected currency
$
How much you pay for (or spend to make) one unit
%
Percentage added on top of cost
Estimates only. No tax or overhead included. Consult an accountant for pricing decisions.

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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:
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.

Cost$40.00
Markup60%
Selling Price$64.00
Profit per unit$24.00
Equivalent margin37.5%

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.

Cost$25.00
Selling Price$45.00
Profit$20.00
Markup %80.0%
Margin %44.4%

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.

Cost$100.00
50% markup selling price$150.00 (profit $50)
50% margin selling price$200.00 (profit $100)

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:

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

Markup is the percentage added to the cost of a product to set the selling price. Formula: Markup% = (Selling Price − Cost) / Cost × 100. For example, a $40 cost sold at $64 has a markup of ($64 − $40) / $40 × 100 = 60%.
Markup uses cost as the base, margin uses selling price. A 100% markup means you doubled the cost. A 50% margin means half of the selling price is profit. Both describe the same dollar profit from different angles. Markup is always a higher number than margin for the same transaction.
Margin = Markup / (1 + Markup), with both values as decimals. For 50% markup: 0.50 / 1.50 = 0.333 = 33.3% margin. Quick reference: 25% markup = 20% margin, 50% markup = 33.3% margin, 100% markup = 50% margin.
Selling Price = Cost × (1 + Markup%/100). If cost is $40 and markup is 60%, selling price = $40 × 1.60 = $64. The profit per unit is $24.
Markups vary widely. Groceries: 25–50%. Clothing retail: 100% (keystone pricing). Restaurants: 200–300% on food. Jewelry: 100–300%. Software and digital products: 500%+. The right markup depends on your operating costs, competition, and desired profit margin.

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