Markup Calculator
Work out what to charge. Enter what an item or job costs you and the markup you want to get the selling price, or enter the cost and price to see the markup you are really getting. It also shows the profit and the margin, which is a different number.
How to calculate markup
- Markup % = (selling price − cost) ÷ cost × 100
- Selling price = cost × (1 + markup %)
- Profit = selling price − cost
- Margin % = profit ÷ selling price × 100
Example. An item that costs you $40 with a 50% markup sells for $40 × 1.5 = $60. Your profit is $20: a 50% markup, but only a 33.3% margin, because margin is measured against the price, not the cost.
Markup to margin conversion chart
The same profit looks bigger as a markup than as a margin. Multiply your cost by the number in the last column to get the price.
| Markup | Margin | Multiply cost by |
|---|---|---|
| 10% | 9.1% | 1.10 |
| 20% | 16.7% | 1.20 |
| 25% | 20.0% | 1.25 |
| 30% | 23.1% | 1.30 |
| 40% | 28.6% | 1.40 |
| 50% | 33.3% | 1.50 |
| 60% | 37.5% | 1.60 |
| 75% | 42.9% | 1.75 |
| 100% | 50.0% | 2.00 |
| 150% | 60.0% | 2.50 |
| 200% | 66.7% | 3.00 |
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin).
Things to know
- Markup and margin are not the same. A 50% markup is a 33.3% margin. If a supplier, buyer, or lender asks for a margin, use the profit margin calculator instead.
- Use your full cost per unit: the price you paid plus inbound shipping, packaging, and any per-unit fees. For services, include labor and materials for the job.
- Keystone pricing is a 100% markup: double the cost. It is common in retail and gives a 50% margin.
- This is arithmetic only. It does not know your market, so check the price against what competitors charge.
Frequently asked questions
How do I calculate markup?
Subtract the cost from the selling price, divide by the cost, and multiply by 100. An item that costs $40 and sells for $60 has a ($60 − $40) ÷ $40 = 50% markup.
How do I calculate selling price from markup?
Multiply the cost by 1 plus the markup as a decimal. A $40 cost with a 50% markup sells for $40 × 1.5 = $60.
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. The same $20 profit on a $40 item sold for $60 is a 50% markup and a 33.3% margin.
How do I convert markup to margin?
Divide the markup by 1 plus the markup. A 50% markup is 0.5 ÷ 1.5 = 33.3% margin, and a 100% markup is a 50% margin.
What is a 30% markup on $100?
A 30% markup on a $100 cost is $30, so the selling price is $130. That works out to a 23.1% margin.
Can markup be more than 100%?
Yes. A 100% markup doubles the cost, and many products are marked up far more. Margin, by contrast, can never reach 100%.
What is a good markup?
It depends on the industry and your overhead. Retail often uses 50% to 100% or more, and contractors commonly mark up materials 10% to 30% on top of labor. Your markup has to cover overhead and still leave a profit.
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Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.