Markup Calculator
Calculate markup percentage, profit margin, selling price, and profit — and convert between markup and margin instantly. Includes a reference table for common percentages and formulas explained.
Why Use Markup Calculator?
"Add 30% markup" and "target a 30% margin" sound similar but produce different prices — and confusing the two is one of the most common pricing mistakes small businesses make. A markup-to-margin calculator keeps the two straight: input what you know (cost and either markup *or* margin) and it returns the selling price, profit dollars, and the other percentage for cross-checking. Useful for e-commerce pricing, freelance rates, SaaS tier design, and spotting when a vendor quote's "30% margin" is actually a 30% markup inflated to look better.
How to Use Markup Calculator
- Select a mode: Markup Calculator, Margin Calculator, or Markup ↔ Margin Converter using the tabs.
- Enter your cost price and markup percentage (or selling price) — the tool calculates all values instantly as you type.
- Switch to Margin mode to calculate profit margin from cost and selling price, or enter margin percentage to find the cost.
- Use the Markup to Margin converter to see equivalent percentages and browse the reference table of common markup/margin pairs.
- Click the copy button next to any result to copy it to your clipboard.
Worked Examples
Markup to selling price
Cost $40, Markup 50%
Selling price $60 • Profit $20 • Margin 33.33%
A 50% markup gives a 33.33% margin — intuitive once you see the formula.
Target margin → required markup
Desired margin 40%
Equivalent markup 66.67%
Use this when a CFO sets margin targets but procurement negotiates in markup.
Quick profit calculation
Cost $125, Sells for $200
Profit $75 • Markup 60% • Margin 37.5%
All three figures from just cost + selling price.
About Markup Calculator
The Markup Calculator is a free online tool that instantly calculates markup percentage, profit margin, selling price, and profit from your cost and pricing data. Whether you're a business owner setting prices, an accountant analyzing profitability, or a student learning business math, this calculator handles all the formulas for you. Markup and margin are two of the most commonly confused business concepts — markup is the percentage added to cost to determine selling price (Markup % = ((Selling Price - Cost) / Cost) × 100), while margin is the percentage of revenue that is profit (Margin % = ((Selling Price - Cost) / Selling Price) × 100). A 100% markup equals a 50% margin, and confusing the two can lead to significant pricing errors. This tool includes three modes: a markup calculator, a margin calculator, and a markup-to-margin converter with a precomputed reference table. Common industry markups include retail (50-100%), food service (100-300%), jewelry (100-300%), and electronics (25-50%). All calculations happen 100% client-side in your browser — your financial data is never sent to any server.
Troubleshooting & Common Issues
Margin is showing negative — why?
A negative margin means you're selling below cost. Check the inputs: if selling price < cost, the tool reports loss (negative margin and markup). This is mathematically correct but catches unit-conversion typos fast.
I calculated 50% margin but my markup became only 100%
That's correct: 50% margin = 100% markup. The formulas: Margin = Markup ÷ (1 + Markup) and Markup = Margin ÷ (1 − Margin). For margins ≥ 50%, markups get very large because you're extracting half or more of the selling price as profit.
Sales tax is throwing off my calculations
Markup and margin are always computed on pre-tax amounts. Strip the tax out before entering cost or selling price, then add it back once the retail price is determined.
Frequently Asked Questions
How do you calculate markup?
Markup % = ((Selling Price - Cost) / Cost) × 100. For example, if a product costs $50 and you sell it for $75, the markup is (($75 - $50) / $50) × 100 = 50%. You can also calculate selling price from markup: Selling Price = Cost × (1 + Markup% / 100).
What is a 25% markup on $100?
A 25% markup on $100 means you add 25% of the cost ($25) to the price. Selling price = $100 × 1.25 = $125. The profit is $25. Note: a 25% markup gives you a 20% profit margin, not 25% — because margin is based on the selling price, not the cost.
What is the difference between markup and margin?
Markup is based on cost: ((Selling Price - Cost) / Cost) × 100. Margin is based on selling price: ((Selling Price - Cost) / Selling Price) × 100. A $50 item sold for $100 has a 100% markup but only a 50% margin. Margin is always lower than markup for the same transaction.
Is 20% margin the same as 25% markup?
Yes! A 20% profit margin equals a 25% markup. The conversion formula is: Markup = Margin / (1 - Margin). So 0.20 / (1 - 0.20) = 0.20 / 0.80 = 0.25 = 25%. Similarly, 30% margin = 42.9% markup, and 50% margin = 100% markup.
How much margin is 40% markup?
A 40% markup equals approximately a 28.6% profit margin. Use the formula: Margin = Markup / (1 + Markup) = 0.40 / 1.40 = 0.2857 = 28.57%. This means if you mark up a product by 40% over cost, 28.57% of your selling price is profit.
What is a 30% markup on $100?
A 30% markup on $100 means the selling price is $130 ($100 × 1.30). The profit is $30. The profit margin on this sale is 23.1% ($30 / $130 × 100), not 30% — this is a common mistake that costs businesses money.
Should I use markup or margin?
Use markup to set prices (adding a percentage to your cost). Use margin to analyze profitability (what percentage of revenue is profit). Both metrics describe the same transaction from different angles. Most accountants and financial analysts prefer margin for reporting, while sales teams and procurement use markup for pricing.
Is my financial data safe?
Yes. The Markup Calculator runs 100% client-side in your browser. Your cost, pricing, and profit data is never transmitted to any server, stored in any database, or tracked in any way. Complete privacy is guaranteed.
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