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Free Markup Calculator

Turn cost into a selling price, or work out the markup and margin behind a price you already charge. Enter a unit cost plus either the selling price or your target markup percentage, and this calculator returns the profit per unit, the markup percent (profit over cost) and the margin percent (profit over price) instantly in your browser.

Profit per unit
$20.00
Selling price
$100.00
Markup (on cost)
25.00%
Margin (on price)
20.00%

Markup = profit ÷ cost. Margin = profit ÷ price. Same $20.00 profit, two different bases. Gross figures — excludes fees, shipping, overhead and taxes.

Estimate only. This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

Quick answer

Markup is profit measured against cost; margin is the same profit measured against the selling price. With cost C and price P, profit = P − C, markup% = (P − C) ÷ C × 100, and margin% = (P − C) ÷ P × 100. To set a price from a target markup, use P = C × (1 + markup% ÷ 100). For example, a $80 item sold for $100 earns $20 profit, a 25% markup, and a 20% margin — the same dollars give different percentages because the base differs.

Formula & method

Enter the unit cost, then either the selling price or the markup percentage. If you provide a price, the calculator finds profit as price minus cost, markup as profit divided by cost, and margin as profit divided by price, each multiplied by 100 to get a percentage. If you provide a markup percentage instead, it first builds the selling price as cost times (1 + markup ÷ 100), then computes profit and the resulting margin from that price. Markup and margin always describe the same dollar profit but use different denominators — markup divides by cost, margin divides by price — so markup is always the larger number. All math runs locally in your browser; nothing is sent to a server.

Examples

Example 1: Price known: cost $80, price $100
Input
Cost = $80, Selling price = $100
Result
Profit $20.00, markup 25.00%, margin 20.00%
Why
Profit = 100 − 80 = 20. Markup = 20 ÷ 80 × 100 = 25%. Margin = 20 ÷ 100 × 100 = 20%. Same $20 profit, but markup divides by the $80 cost while margin divides by the $100 price, so the percentages differ.
Example 2: Markup known: cost $50, markup 40%
Input
Cost = $50, Markup = 40%
Result
Selling price $70.00, profit $20.00, margin 28.57%
Why
Price = 50 × (1 + 40 ÷ 100) = 50 × 1.40 = 70. Profit = 70 − 50 = 20. Margin = 20 ÷ 70 × 100 = 28.57%. A 40% markup translates to a lower 28.57% margin.
Example 3: Price known: cost $120, price $200
Input
Cost = $120, Selling price = $200
Result
Profit $80.00, markup 66.67%, margin 40.00%
Why
Profit = 200 − 120 = 80. Markup = 80 ÷ 120 × 100 = 66.67%. Margin = 80 ÷ 200 × 100 = 40%. Markup is always larger than margin for the same profit.
Example 4: Keystone pricing: cost $25, markup 100%
Input
Cost = $25, Markup = 100%
Result
Selling price $50.00, profit $25.00, margin 50.00%
Why
Price = 25 × (1 + 100 ÷ 100) = 25 × 2 = 50. Doubling cost (keystone pricing) is a 100% markup, which equals a 50% margin — a useful reference point: 100% markup = 50% margin.

When to use this tool

  • Setting a retail or wholesale price from a known product cost using a target markup percentage.
  • Checking the markup and margin baked into a price you already charge to see how profitable each unit is.
  • Comparing supplier quotes or product lines on a like-for-like basis by converting every price into markup and margin.
  • Translating between markup and margin when a vendor quotes one and your accounting reports the other.

Common mistakes

  • Confusing markup with margin. They use the same profit but different bases: markup divides profit by cost, margin divides it by price. A 50% markup is only a 33.3% margin, not 50%.
  • Assuming a 100% markup means 100% profit on the sale. A 100% markup just doubles the cost; the margin is 50%, because half of the selling price is still the cost.
  • Marking up by the margin you want. To hit a 40% margin you do not add 40% to cost — that yields only a 28.6% margin. Use markup% = margin% ÷ (100 − margin%) × 100, so 40% margin needs a 66.7% markup.
  • Forgetting that this markup is gross. It only covers cost of goods; shipping, payment fees, returns, overhead and taxes still come out of the margin, so your net profit is smaller.
  • Entering a cost of zero. Markup divides by cost, so a zero or blank cost makes markup undefined — the calculator shows a dash until you enter a positive cost.

Frequently asked questions

What is the difference between markup and margin?

Both describe the same dollar profit, but against different bases. Markup is profit divided by cost; margin is profit divided by the selling price. Because cost is smaller than price, markup is always the larger percentage. A $20 profit on an $80 cost item sold for $100 is a 25% markup but a 20% margin.

How do I calculate selling price from cost and markup?

Multiply the cost by one plus the markup as a decimal: price = cost × (1 + markup% ÷ 100). For a $50 cost with a 40% markup, the price is 50 × 1.40 = $70.

How do I convert a markup percentage to a margin percentage?

Use margin% = markup% ÷ (100 + markup%) × 100. A 50% markup becomes 50 ÷ 150 × 100 = 33.3% margin. To go the other way, markup% = margin% ÷ (100 − margin%) × 100.

What markup do I need for a specific margin?

Use markup% = margin% ÷ (100 − margin%) × 100. For a 40% margin you need 40 ÷ 60 × 100 = 66.7% markup. For a 50% margin you need a 100% markup (keystone pricing).

Does this markup include taxes, shipping and fees?

No. This is a gross markup over the product cost you enter. Selling fees, shipping, payment processing, returns, overhead and income tax are not included, so your net profit per unit will be lower than the markup or margin shown.

Can the markup percentage be more than 100%?

Yes. Markup has no upper limit — a price that is three times the cost is a 200% markup (66.7% margin). Margin, by contrast, can never reach 100% because the selling price always includes some cost.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

Disclaimer

This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

  • ✓ Free to use
  • ✓ No sign-up required
  • ✓ Runs entirely in your browser — nothing is uploaded.
  • ✓ Formula and method shown above
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Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

Built and reviewed by HIFreeTools against the formula shown above and any authoritative references cited on this page. See our methodology and editorial standards.

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