Markup Calculator

Profit
Markup
Margin

How to use

  1. Pick what you know: a markup percentage, a selling price, or a target margin.
  2. Enter your cost and that second number.
  3. 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.