About the Markup Calculator
Markup and margin both describe profit, but against different bases. Markup is profit as a percentage of what the item cost you, while margin is profit as a percentage of what you sell it for. Mixing them up is a classic pricing mistake: a 50 percent markup gives only a 33.3 percent margin. This calculator starts from your cost and then one more number, either the markup you want, the margin you want or the selling price, and shows the full picture: price, profit, markup and margin together.
Updated October 2026
How to use the Markup Calculator
- 1Pick the currency symbol.
- 2Choose what you know besides the cost: markup, margin or selling price.
- 3Enter the cost of the item.
- 4Enter the markup percent, the margin percent or the selling price.
- 5Read the selling price, profit, markup and margin.
Choosing between markup and margin
Retailers often set prices by markup because it is quick: take the cost and add a fixed percentage. Finance teams report margin because it shows what share of every sale becomes profit. Know which one a colleague or supplier is quoting before you compare numbers.
A short example shows why the distinction matters. A shop buys a jacket for 80 and adds a 25 percent markup, so it sells for 100 and earns 20. Its margin is 20 percent, not 25. If the owner sets a target of 25 percent margin and then thinks of it as markup, the jacket would be priced at 100 and the shop would fall short of the target. Always write down which measure you mean.
Quick conversion table
- 25% markup is a 20% margin.
- 50% markup is a 33.3% margin.
- 100% markup is a 50% margin.
- 200% markup is a 66.7% margin.
- Margin = markup ÷ (1 + markup).
Pricing beyond cost
Cost-plus pricing ignores what customers will pay. Check competitors and the value you offer before setting a final price. For related sums use the Profit Margin Calculator, the Break-Even Calculator and the Discount Calculator, or the Reverse Percentage Calculator when you need to work back from a final price.
Features
- Three starting points: markup, margin or price
- Shows markup and margin side by side
- Profit amount in your currency
- Prevents impossible margins of 100% or more
- Works for any product or service
- Copy the result in one tap
Frequently asked questions
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by the selling price. For an item costing 60 and selling for 90, the profit is 30, so the markup is 50 percent and the margin is 33.3 percent.
How do I calculate selling price from markup?
Multiply the cost by one plus the markup as a decimal. A cost of 60 with a 50 percent markup gives 60 × 1.5 = 90. The calculator does this when you choose the markup option.
How do I calculate selling price from a target margin?
Divide the cost by one minus the margin as a decimal. To earn a 40 percent margin on a cost of 60, the price is 60 ÷ 0.6 = 100. Do not multiply by 1.4, which would only give a margin of 28.6 percent.
Can the margin ever be 100 percent?
No, because it would need the price to be infinite compared with the cost. Margin is always below 100 percent, while markup can be any size, such as 300 percent on a product that costs a quarter of its price.
What is a good markup?
It depends on the industry. Grocery stores may use 10 to 25 percent, clothing shops 100 percent or more and restaurants often mark up food costs by 200 to 300 percent. Your own costs and competition should guide the number.
Does the calculator include tax or discounts?
No. It works on the pre-tax price. If you plan discounts, work out the selling price after the discount and use the price option to see the margin that remains.