Percentage Calculator / Markup calculator
Markup Calculator
Turn a cost into a selling price, find the markup percentage between any cost and price, and convert between markup and profit margin. Free, ad-free, and every answer updates as you type.
Price and markup
Add markup to a cost
Markup percentage from cost and price
Markup and margin
Markup to margin
Margin to markup
Markup vs. margin
Markup and margin describe the same profit from two different angles. Markup compares profit to what you paid; margin compares it to what the customer paid. Because the selling price is always the larger number, the margin percentage is always smaller than the markup percentage.
Markup
(price − cost) ÷ cost × 100
Cost $40, price $50 → 10 ÷ 40 × 100 = 25% markup. Use it when you price up from cost.
Margin
(price − cost) ÷ price × 100
Cost $40, price $50 → 10 ÷ 50 × 100 = 20% margin. Use it when you report profitability.
Markup to margin at a glance
Markup questions people ask
How do I calculate markup?
- Divide the profit by the cost and multiply by 100. Example: cost $40, price $50 → (50 − 40) ÷ 40 × 100 = 25% markup.
How do I add markup to a cost?
- Multiply the cost by (1 + markup ÷ 100). Example: $40 with a 50% markup = 40 × 1.50 = $60.
What is the difference between markup and margin?
- Markup measures profit against cost; margin measures the same profit against the selling price. A $40 cost sold at $50 is a 25% markup but a 20% margin, because 10 ÷ 40 = 25% and 10 ÷ 50 = 20%.
How do I convert markup to margin?
- Margin = markup ÷ (100 + markup) × 100. A 50% markup is a 33.33% margin.
How do I convert margin to markup?
- Markup = margin ÷ (100 − margin) × 100. A 40% margin needs a 66.67% markup.
What markup should I use?
- Work backwards from the margin your business needs after all costs, then use the margin-to-markup conversion above to set the price. Retail markups commonly sit between 50% and 100%, but the right number depends on your costs, competition and volume.
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