Markup Calculator
Enter a cost and a markup percentage to get the selling price, the markup amount, and the profit margin that markup gives you. Free, instant, no signup needed.
Markup and margin are not the same. A 50% markup on cost is only a 33.33% profit margin, because margin is measured against the selling price, not the cost.
How to use this tool
- 1Enter your cost - the total amount it costs you to produce or source the item, including materials, labour, and overheads.
- 2Enter your target markup percentage - how much above cost you want to charge.
- 3Read the results: selling price, markup amount in currency, and the profit margin the markup produces.
- 4Adjust the markup percentage to find the selling price that hits your target margin.
Formula used
Example
Markup amount is 20. Selling price is 70. Profit margin is 28.57% (20 / 70), which is lower than the 40% markup. This is the most common source of confusion: a 40% markup never gives a 40% margin.
Markup amount is 120. Selling price is 240. Profit margin is 50% - doubling the cost always gives a 50% margin, regardless of the amount. A useful anchor when setting standard pricing.
Common use cases
- Pricing retail products consistently using a standard markup across a range
- Converting a supplier's suggested retail price back to check the implied markup
- Setting service rates: applying a 60% markup to an hourly cost of 25 to charge 40 per hour
- Checking whether a reseller's price leaves you enough margin after your costs
- Comparing a 30% markup versus a 50% markup to see the real difference in selling price and margin
Common mistakes
- Applying the markup to the selling price instead of the cost - markup is always calculated on cost, not on the final price.
- Expecting a 40% markup to give a 40% margin - a 40% markup gives only 28.57% margin because the denominators are different.
- Not including all costs in the cost field - payment fees, packaging, and delivery all reduce your real margin if not included upfront.
- Using markup when you should be working backwards from a target margin - use the Profit Margin Calculator if you know the margin you want and need to find the selling price.
Frequently asked questions
Is markup the same as profit margin?
No. Markup is added to cost, so a 40% markup on a 50 cost adds 20. Margin measures that 20 against the 70 selling price, giving 28.57%. Markup is always the larger number for any given product.
How do I turn a markup into a margin?
Margin = markup / (100 + markup) x 100. A 50% markup equals a 33.33% margin. A 100% markup (doubling the cost) equals a 50% margin. This calculator shows the resulting margin automatically.
How do I turn a target margin into a markup?
Markup = margin / (100 - margin) x 100. If you want a 40% margin, the required markup is 40 / 60 x 100 = 66.67%. Use the Profit Margin Calculator to verify: enter your cost and the selling price it produces.
Does the markup include tax or fees?
No. It uses only the cost you enter. Payment processing fees, marketplace commissions, shipping, and sales tax are separate. Add them to your cost before calculating markup if you want a fully loaded price.
What markup gives a 50% margin?
A 100% markup gives exactly a 50% margin. This is because you are doubling the cost, so profit equals cost, and profit is 50% of the selling price. Higher markups give margins between 50% and 100%.
What is a typical markup for retail products?
Retail markup varies widely by category. Clothing often has 100-200% markup. Electronics may be 10-30%. Handmade goods can be 200-400%. The right markup is one that produces a margin high enough to cover your operating costs and still leave net profit.
Can I use this for services, not just products?
Yes. Enter your cost to deliver the service (time at an hourly rate, plus any materials or tools) and your target markup. The calculator gives you a rate to charge. Many consultants and contractors use a 50-150% markup on their base costs.
Related tools
Last updated