Markup Calculator

Calculate selling price, profit dollars and margin % — or work backwards from any value.

Cost
—
$
Markup
—
%
Selling Price
—
$
Profit
—
$
Margin
—
%

Markup vs. Margin

Markup is cost-based. Margin is revenue-based. A 40% markup equals a 28.57% margin.

How the Markup Calculator Works

Markup and margin are both ways to express profit, but they use different bases. Markup is calculated as a percentage of cost: (Selling Price − Cost) ÷ Cost × 100. Margin is calculated as a percentage of revenue: (Selling Price − Cost) ÷ Selling Price × 100. This calculator offers three entry modes so you can work from whatever values you know. Mode 1 solves for selling price given cost and markup. Mode 2 solves for markup and margin given cost and selling price. Mode 3 solves for cost given selling price and desired margin. Retail businesses typically use keystone pricing (100% markup = 50% margin). Service businesses may use lower markups on materials but higher on labor. Always verify your pricing covers all overhead costs before applying a markup.

Frequently Asked Questions

What is the difference between markup and profit margin?
Markup is calculated on cost: (Price − Cost) ÷ Cost. Margin is calculated on revenue: (Price − Cost) ÷ Price. A 50% markup equals only a 33.3% margin.
How do I calculate a 50% markup?
Multiply your cost by 1.5. A $40 item with 50% markup sells for $60. That's a 33.3% gross margin.
What markup percentage should a small business charge?
Retail businesses typically mark up goods 50–100% (keystone pricing). Service businesses often mark up 20–50% over direct costs.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). A 0.50 markup (50%) = 0.50 ÷ 1.50 = 33.3% margin.

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