CAL-003
Markup Calculator
Markup is the percentage you add on top of your cost. Enter a cost and a markup to get the selling price, along with the profit and the margin it corresponds to.
- Free
- No signup
- Private · runs locally
How to calculate markup
- Enter your cost price.
- Enter the markup percentage you want to apply.
- Read the resulting selling price, profit and equivalent profit margin.
Why markup is the practical starting point
Selling price = Cost × (1 + Markup ÷ 100). Most businesses price this way because cost is the number they know first; margin is what they discover afterwards.
A consistent markup across a catalogue produces different margins depending on the product, which is fine as long as you check the margin on your highest-volume lines. Always confirm the margin figure before committing to a price.
Remember that discounts eat markup faster than they look. A 50% markup gives a 33.3% margin; a 20% discount on that price wipes out most of the profit.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 100% markup is a 50% margin.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. A 66.67% markup equals a 40% margin.
What markup should I use?
Work backwards from the margin you need to cover overheads and still make a profit, then check that the resulting price is competitive in your market.