Money
Markup Calculator
Enter cost and a markup percentage to compute selling price, gross profit, and margin. Or switch to reverse mode to start from cost and selling price and find the implied markup and margin.
What it costs you, before markup. · e.g. 50.00
Percentage added on top of cost. · e.g. 40
Selling price
$70.00
40% markup · 28.57% margin
Examples
$50 cost at 40% markup
= $70 sale · 28.6% margin
$200 cost at 100% markup
= $400 sale · 50% margin
Reverse: $50 cost, $80 sale
= 60% markup · 37.5% margin
How it works
Markup is the percentage you add to cost. Margin is the percentage of the selling price that's profit. They're two ways of describing the same dollar amount.
Selling price · cost × (1 + markup ÷ 100)
Markup % · (profit ÷ cost) × 100
Margin % · (profit ÷ selling price) × 100
Frequently asked questions
Markup is profit as a percent of cost. Margin is profit as a percent of selling price. A 50% markup is a 33% margin. They describe the same dollar profit but answer different questions: markup says "how much I added to cost," margin says "how much of the sale is profit."
Margin is usually more useful when comparing products or businesses, because it's directly comparable across different cost structures. Markup is the formula most people use day-to-day at the register.
Markup % = margin % ÷ (1 − margin %). For a 40% margin, the markup is 0.40 ÷ 0.60 ≈ 66.7%. The reverse mode of this calculator does the inverse — enter cost and the selling price you want, and it tells you both the markup and the margin.
However you define cost is what flows through. If your cost is the wholesale price plus inbound shipping plus packaging, use that. Margins and markups stay consistent as long as you're consistent about what "cost" includes.
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