Free Calculators

Markup Calculator

Work out markup in dollars and percent, find the price a target markup requires, and see the margin at the same time.

Your numbers

From cost and selling price

$
$

From cost and desired markup

$
%
Your Results

From cost and selling price

Markup-
Markup percentage-
Profit margin-

From cost and desired markup

Selling price-
Markup-
Profit margin-

Want a free Small Business Profit Checklist?

A one-page checklist of the numbers every small business should know: margins, break-even, true employee cost and more.

How is this calculated?

Markup is profit measured against cost. Margin is the same profit measured against the selling price.

Markup $ = Selling Price - Cost
Markup % = Markup $ / Cost x 100
Profit Margin = Markup $ / Selling Price x 100
Selling Price = Cost x (1 + Markup % / 100)

Worked Example

Cost: $80. Selling price: $100.

Markup = $100 - $80 = $20. Markup percentage = $20 / $80 x 100 = 25.0%. Profit margin = $20 / $100 x 100 = 20.0%.

Working the other way: a cost of $80 with a desired markup of 25 percent gives a selling price of $80 x 1.25 = $100.

How to Calculate Markup

Subtract the cost from the selling price to get the markup in dollars. Divide that by the cost (not the price) and multiply by 100 for the markup percentage. To price from a target markup instead, multiply the cost by one plus the markup rate: a 25 percent markup means multiplying cost by 1.25.

The trap to avoid: markup and margin use different bases. A 50 percent markup is only a 33.3 percent margin, because the margin divides the same profit by the larger selling price. Our markup vs margin explainer walks through the difference with more examples.

Why Markup Matters

Markup is the language of buying and wholesale pricing: suppliers, retailers and distributors all talk in markups. If you buy at trade prices and sell at retail, markup is how you check quickly whether a product can carry your costs. It also keeps pricing consistent across a catalogue when costs change.

Just remember that markup ignores everything except product cost. Shipping, fees and advertising still come out of that markup, which is why the Profit Calculator should have the final say.

How to Improve Your Numbers

Set a minimum markup per category based on what the markup has to cover: shipping, fees, returns and your target profit. Review it whenever supplier prices move, because a fixed selling price with a rising cost is a shrinking markup. For products you price from scratch, the Pricing Calculator builds the price from all your costs plus a target margin.

Frequently Asked Questions

Is a 100 percent markup the same as a 100 percent margin?

No. A 100 percent markup doubles the cost, so a $50 cost becomes a $100 price and the margin is 50 percent. A 100 percent margin is impossible, since it would mean the product cost nothing.

How do I convert markup to margin?

Divide the markup percentage by one plus the markup rate. A 25 percent markup becomes 0.25 / 1.25 = 20 percent margin. The calculator shows both numbers side by side.

What markup should I use?

Enough to cover your other per-sale costs and leave profit. Add shipping, fees and advertising to the product cost first, then check the full picture in the Profit Calculator before settling on a markup.

Why do retailers talk about markup instead of margin?

Because buying decisions start from cost. Markup answers the buyer's question directly: if I pay this much, what do I sell it for? Margin answers the accountant's question: of the money that came in, how much did I keep?

Related Calculators