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
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)
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 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.
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.
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.
Once you have prices, check the profit of a whole order or month with the gross profit calculator.
Markup % = (selling price − cost) ÷ cost × 100. For a product that costs 40 and sells for 60, the markup is 20 ÷ 40 × 100 = 50%.
Multiply the cost by 1 plus the markup as a decimal. A 30% markup on a cost of 80 gives 80 × 1.30 = 104.
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.
Markup = margin ÷ (100 − margin) × 100. A 25% margin equals a 33.33% markup, and a 40% margin equals a 66.67% markup.
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%.
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.