Markup Calculator
- Profit
- Markup
- Margin
How to use
- Pick what you know: a markup percentage, a selling price, or a target margin.
- Enter your cost and that second number.
- Read the price, profit, markup and margin. The note under the result shows how far markup and margin sit apart.
How it works
Selling price = cost × (1 + markup ÷ 100). Profit = price − cost.
Markup is profit divided by cost. Margin is profit divided by price, so the same profit always gives a smaller margin than markup.
To hit a target margin, price = cost ÷ (1 − margin ÷ 100). A 50% markup is only a 33.3% margin, and a 100% margin is impossible at any price.
FAQ
What is the difference between markup and margin?
Markup is measured against your cost, margin against your selling price. Selling a $60 item for $100 is a 66.7% markup and a 40% margin.
Why does a 50% markup not give a 50% margin?
The profit is the same, but the price it is divided by is larger than the cost. Markup 50% equals margin 33.3%. To earn a 50% margin you need a 100% markup.
Does this include tax, shipping or fees?
No. Add those to your cost first if you want the result to reflect them.