How to use the markup calculator
- Choose what you know. Every mode starts from the cost of one item. Then pick the markup to get a selling price, the price to see the markup and margin you are already making, or the margin I want to get the price that gives that margin.
- Type the cost, such as 40 or 12.50. Use the cost of one item, one job or one hour, not a whole order.
- Type the markup, the selling price or the margin. Percentages are typed without the % sign, such as 50.
The selling price, the profit per item, the markup and the margin all update as you type. Use Copy result to paste all five figures into a price list, a quote or a spreadsheet.
Markup vs margin: the difference
Markup and margin both describe the same profit, the gap between what an item costs you and what you sell it for. They differ in what that profit is compared with:
- Markup is the profit as a percentage of the cost.
- Margin (often called gross margin) is the profit as a percentage of the selling price.
Take an item that costs $80 and sells for $100. The profit is $20. Compared with the $80 cost, $20 is a 25% markup. Compared with the $100 price, the same $20 is a 20% margin. Because the price is always bigger than the cost when you make a profit, the margin is always the smaller of the two numbers.
This matters when someone says "we need 30%". A 30% markup on a $100 cost gives a price of $130 and a margin of only 23.08%. If the 30% was meant as a margin, the price needs to be $142.86. Mixing the two up is an easy mistake to make, and it always goes the same way: too little profit.
The formulas
| To find | Formula |
|---|---|
| Profit | price − cost |
| Markup % | profit ÷ cost × 100 |
| Margin % | profit ÷ price × 100 |
| Price from markup | cost × (1 + markup ÷ 100) |
| Price from margin | cost ÷ (1 − margin ÷ 100) |
| Margin from markup | markup ÷ (100 + markup) × 100 |
| Markup from margin | margin ÷ (100 − margin) × 100 |
The calculator works with the exact numbers and only rounds for display: prices to the cent and percentages to two decimal places.
Markup to margin table
Each row is one price for an item that costs $100. Read across to see the markup and the margin for the same price.
| Cost | Selling price | Profit | Markup | Margin |
|---|---|---|---|---|
| $100 | $110 | $10 | 10% | 9.09% |
| $100 | $120 | $20 | 20% | 16.67% |
| $100 | $125 | $25 | 25% | 20% |
| $100 | $130 | $30 | 30% | 23.08% |
| $100 | $140 | $40 | 40% | 28.57% |
| $100 | $150 | $50 | 50% | 33.33% |
| $100 | $175 | $75 | 75% | 42.86% |
| $100 | $200 | $100 | 100% | 50% |
| $100 | $250 | $150 | 150% | 60% |
| $100 | $300 | $200 | 200% | 66.67% |
Doubling the cost (a 100% markup, sometimes called keystone pricing in retail) gives a 50% margin. Markup has no upper limit, but margin can never reach 100%, because that would mean the item cost nothing.
Worked examples
| You know | Sum | Result |
|---|---|---|
| Cost $40, markup 50% | 40 × 1.5 = 60 | Price $60.00, profit $20.00, margin 33.33% |
| Cost $80, price $100 | 20 ÷ 80 and 20 ÷ 100 | Markup 25%, margin 20% |
| Cost $30, margin 25% wanted | 30 ÷ 0.75 = 40 | Price $40.00, markup 33.33% |
| Cost $12.50, margin 40% wanted | 12.50 ÷ 0.6 = 20.8333 | Price $20.83, markup 66.67% |
In the last example the exact price is $20.8333..., which shows as $20.83. If you round your prices to a tidy figure such as $20.99, put that figure into the price mode to see the markup and margin you will really make.
Special cases
- Selling below cost. In the price mode, a price lower than the cost gives a negative markup and margin, and the calculator shows how much each sale loses.
- A cost of 0. Markup is a percentage of the cost, and there is no percentage of nothing, so the markup shows as undefined. The margin is still worked out.
- A margin of 100% or more. This is not possible for an item that costs anything, so the calculator asks for a smaller margin instead of showing an infinite price.
- Sales tax and VAT. Work out markup and margin on prices before tax. Tax collected for the government is not part of your profit. If you charge UK VAT, add it afterwards with the VAT calculator.
- Other costs. These are gross figures for one item. Rent, wages, card fees and delivery are not included, so the profit left at the end of the month will be lower.
Questions and answers
Is markup the same as margin?
No. Both use the same profit, but markup divides it by the cost and margin divides it by the selling price. An item that costs $80 and sells for $100 has a 25% markup and a 20% margin.
What margin does a 50% markup give?
A 33.33% margin. A $100 cost with a 50% markup sells for $150. The $50 profit is 50% of the cost but one third of the price.
How do I price an item to get a 30% margin?
Divide the cost by 0.7 (that is, 1 minus 0.30). A $70 cost needs a price of $100. Multiplying the cost by 1.3 instead gives only a 23.08% margin.
Why is a 100% markup only a 50% margin?
A 100% markup doubles the cost, so a $50 item sells for $100. The $50 profit is all of the cost but only half of the price.
Should markup include sales tax or VAT?
No. Work out markup and margin on prices before tax, because the tax you collect is passed on to the government and is not profit.
Sources
Checked on 7 October 2026. If a rule has changed, please tell us.