Markup Calculator
Enter your cost and any one of markup, selling price or margin. The calculator fills in the other two and shows your profit per unit.
Enter the cost, then any one of markup, selling price or margin. The other two fill in.
Markup
50%
Selling price
60
Margin
33.33%
Profit per unit
20
Markup = (price − cost) ÷ cost × 100
How to calculate markup
Markup is the amount you add to your cost to set a selling price, written as a percentage of the cost. To calculate it, subtract the cost from the selling price, divide by the cost, and multiply by 100.
Markup formula: markup % = (selling price − cost) ÷ cost × 100
Selling price from a markup: selling price = cost × (1 + markup % ÷ 100)
Worked example
You import a kettle for 40 and sell it for 60. Profit is 60 − 40 = 20. Markup is 20 ÷ 40 × 100 = 50%. The margin on the same sale is 20 ÷ 60 × 100 = 33.33%. The profit is the same in money; the two percentages differ only because they divide by different numbers.
Going the other way: you want a 35% markup on a cost of 18.50. Selling price = 18.50 × 1.35 = 24.98.
Markup vs margin: what is the difference?
Markup divides profit by cost; margin divides the same profit by the selling price. That is why markup is always the larger number for a profitable sale, and why a 50% markup is not a 50% margin. Mixing them up is the most common pricing mistake: a buyer who asks for a "30% margin" and gets a 30% markup has priced about 7 points too low.
| Markup | Margin | Price on a cost of 100 |
|---|---|---|
| 10% | 9.09% | 110 |
| 25% | 20% | 125 |
| 33.33% | 25% | 133.33 |
| 42.86% | 30% | 142.86 |
| 50% | 33.33% | 150 |
| 66.67% | 40% | 166.67 |
| 100% | 50% | 200 |
| 150% | 60% | 250 |
| 200% | 66.67% | 300 |
To convert between them: margin = markup ÷ (100 + markup) × 100, and markup = margin ÷ (100 − margin) × 100. A margin can never reach 100%, but a markup can be any size.
How to calculate a markup percentage step by step
- Find your full unit cost. For bought in goods this is the landed cost: supplier price plus freight, insurance, duty and clearance, divided by the number of units.
- Subtract the cost from the selling price. The result is your gross profit per unit.
- Divide the profit by the cost.
- Multiply by 100 to get the markup percentage.
If you only know the price and the markup and need the cost (for example to check a supplier quote against a retail price), divide the price by (1 + markup ÷ 100). A product selling at 75 with a 50% markup cost 75 ÷ 1.5 = 50.
What markup should I use?
There is no single right markup; it depends on your costs, your competitors and how fast the stock sells. Work backwards from the margin you need to cover overheads and still make a profit, then convert that margin to a markup with the table above. Slow moving, bulky or fragile goods need a higher markup than fast moving goods, because they tie up money and space for longer. Check the result against what similar products sell for before you fix a price list.
Common markup mistakes
- Pricing from the ex works price. Freight and duty on imported goods can add a large share to the supplier price. Price from the landed cost, or your markup will be eaten by logistics.
- Using one markup for every line. Low value, high volume items and high value, slow items rarely carry the same markup.
- Forgetting discounts. If you give a 10% trade discount, your list price must carry enough markup to absorb it.
- Calling markup "margin" in a quote. Say which one you mean, especially on a proforma invoice or price agreement.
Once you have prices, check the profit of a whole order or month with the gross profit calculator.
Features
- Works from markup, selling price or margin, whichever you know
- Shows markup and margin side by side so you never mix them up
- Profit per unit for every price you try
- Accepts decimals with a dot or a comma
- Runs in your browser, nothing to sign up for
Frequently asked questions
What is the formula for markup?
Markup % = (selling price − cost) ÷ cost × 100. For a product that costs 40 and sells for 60, the markup is 20 ÷ 40 × 100 = 50%.
How do I add a markup to a cost?
Multiply the cost by 1 plus the markup as a decimal. A 30% markup on a cost of 80 gives 80 × 1.30 = 104.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a cost of 100 gives a price of 150 and a margin of 33.33%. A 50% margin needs a price of 200, which is a 100% markup.
How do I convert margin to markup?
Markup = margin ÷ (100 − margin) × 100. A 25% margin equals a 33.33% markup, and a 40% margin equals a 66.67% markup.
Can markup be more than 100%?
Yes. Markup is measured against cost, so selling at three times the cost is a 200% markup. Margin, which is measured against the price, always stays below 100%.
Should markup include shipping and duty?
Yes. Apply the markup to your full landed cost, including freight, insurance, customs duty and clearance, so the selling price covers every cost of getting the goods to you.