Markup Calculator
This markup calculator turns a cost and a markup percentage into a selling price, the profit per unit, and the margin that price gives. It also converts in both directions: markup to margin, and margin to markup. Use the markup calculator to price products from cost and to translate between the two percentages that buyers and accountants use.
Results
The Markup Calculator is part of our Business & Pricing collection. Browse more business & pricing to size, convert, and check your work alongside this tool.
What the markup calculator does
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same price gives two different percentages, which is why they are often confused. The markup calculator adds the markup to the cost to get the price, then shows the margin that price produces. Enter a margin instead and it gives the markup you need.
Markup formula
M is the markup and G is the margin, both in percent. Markup can be any size, but margin can never reach 100%, because profit can never equal the whole price.
Markup calculator example
A product costs 40 and you mark it up 50%:
The profit per unit is 20. To reach a 25% margin instead, you need a markup of 25 ÷ 75 × 100 = 33.33%.
How to use the markup percentage calculator
Enter the cost per unit and the markup you want in percent. Press Calculate to see the selling price, the profit per unit, and the gross margin. To convert a target margin into a markup, enter it in the margin field; you can leave the cost empty for a pure conversion.
Reading your markup to margin calculator result
Markup always reads higher than margin for the same price. A 100% markup doubles the cost and gives a 50% margin. When a supplier talks markup and your accounts talk margin, convert before you compare. Check that the margin covers your overheads, not only the cost of the item.
When to use a retail markup calculator
- Pricing products from the wholesale cost
- Converting a target margin into a markup
- Checking a supplier quote that uses markup
- Setting keystone pricing at 100% markup
- Comparing markup across product lines
Common markup calculator mistakes
- Using markup as margin. Convert before you compare.
- Dividing by price for markup. Markup is on cost.
- Ignoring overheads. The margin must cover more than the item.
- Forgetting discounts. Promotions cut the effective markup.
Tips for a price markup calculator
- Set markups by product group, not one rate for all.
- Round prices after you apply the markup.
- Review markups when supplier costs change.
Markup vs margin in pricing decisions
Retailers often set prices with markup because it starts from the cost they know. Finance teams track margin because it shows what share of revenue is left after the cost of goods. Mixing them up is costly: aim for a 30% margin but apply a 30% markup, and you end up with a 23.08% margin. When you already know the cost and the price, the profit margin calculator gives the margin directly.
Markup on cost with discounts and volume
A markup must leave room for sales. If you plan to run 20% off promotions, a 50% markup falls to a 20% markup during the sale, which the discount calculator shows in money terms. Higher markups mean fewer units to cover fixed costs, and the break-even calculator shows how many you need at each price.
Markup vs margin conversion table
| Markup on cost | Equals margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20.00% |
| 33.33% | 25.00% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50.00% |
| 150% | 60.00% |
| 200% | 66.67% |
Markup Calculator FAQ
How do you calculate markup?
Markup = (Price − Cost) ÷ Cost × 100. A cost of 40 and a price of 60 is a 50% markup.
What is the difference between markup and margin?
Markup divides profit by cost; margin divides profit by price. A 50% markup equals a 33.33% margin.
How do I convert margin to markup?
Markup = Margin ÷ (100 − Margin) × 100. A 25% margin needs a 33.33% markup.
What is keystone pricing?
A 100% markup, doubling the cost. It gives a 50% margin.