Markup Calculator
Set a selling price from your cost, and see the profit margin that price actually delivers.
Markup calculator
Apply a markup to a cost, or find the markup hiding in your current prices.
You know the cost and the markup you want to apply.
You know the cost and the selling price.
Recent calculations
Markup and margin are not the same number
This is the most expensive confusion in small business pricing. Markup measures profit against what the item cost you. Margin measures the same profit against what you sold it for. Same profit, different denominators, different percentages — and margin is always the smaller of the two.
Buy for 250, sell for 350, and you have made 100. As a markup that is 100 ÷ 250 = 40%. As a margin it is 100 ÷ 350 = 28.57%. Both describe the same transaction. This calculator shows both figures on every result so there is no ambiguity about which one you are quoting.
How to use it
The first tab is for setting prices: enter what an item cost you and the markup you want, and you get the selling price, the profit per unit, and the resulting margin. The second tab works from prices you already charge, revealing the markup and margin built into them.
The formulas
Worked example
An item costing 250, marked up 40%
- Profit: 250 × 0.40 = 100
- Selling price: 250 + 100 = 350
- Margin on that price: 100 ÷ 350 × 100 = 28.57%
Markup to margin at a glance
| Markup | Equivalent margin | Cost 100 sells for |
|---|---|---|
| 10% | 9.09% | 110 |
| 25% | 20.00% | 125 |
| 40% | 28.57% | 140 |
| 50% | 33.33% | 150 |
| 100% | 50.00% | 200 |
| 200% | 66.67% | 300 |
Read that table carefully if you have ever been told to "add 30% to hit a 30% margin". To reach a 30% margin you need roughly a 42.9% markup, and pricing on the wrong one leaves a real hole in the takings.
Common mistakes
Quoting markup when a buyer means margin. Wholesale and retail conversations often use the words interchangeably. Confirm which denominator is meant before agreeing a number.
Applying markup to a discounted cost without rechecking. If your supplier's discount is temporary, prices set on that lower cost stop working when it ends.
Ignoring the fees at the other end. Marketplace commissions and payment charges come out of the selling price, so they reduce your margin even though the markup on paper looks unchanged.