Markup Calculator
Business & SellerEnter a cost plus a markup, a target margin or a selling price — get the other numbers, including the markup-versus-margin difference that trips people up.
Last updated: October 2026
Markup is how much you add on top of what something costs you, expressed as a percentage of the cost. If an item costs $40 and you sell it for $60, the $20 profit is a 50% markup. Markup is easy to confuse with gross margin, which expresses the same $20 as a share of the selling price: $20 ÷ $60 = 33.3%. The two are never equal (except at zero), and mixing them up is a common pricing mistake. If you need a 50% margin and apply a 50% markup instead, you end up with only 33.3% margin. This markup calculator works from any starting point. Give it the cost and a markup to get a price. Give it the cost and a target margin to get the price that hits that margin. Or give it the cost and an existing price to see the markup and margin you are actually earning.
How to Calculate Markup
1. Start with your cost per unit: what you paid, or what it cost to make. 2. To price from a markup: selling price = cost × (1 + markup ÷ 100). 3. To price from a target margin: selling price = cost ÷ (1 − margin ÷ 100). 4. To find the markup on an existing price: markup = (price − cost) ÷ cost × 100. 5. Margin is always profit ÷ price, so it is smaller than the markup on the same sale.
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) Markup → margin: Margin% = Markup% ÷ (100 + Markup%) × 100 Margin → markup: Markup% = Margin% ÷ (100 − Margin%) × 100
Markup Examples
Example 1 — Price from a 50% markup
Cost $40 × (1 + 0.50) = $60.00 selling price Profit $20.00 · Markup 50% · Margin 33.3%
Example 2 — Price for a 40% gross margin
Cost $40 ÷ (1 − 0.40) = $66.67 selling price Profit $26.67 · Margin 40% · Markup 66.7%
Example 3 — Markup on an existing price
Cost $12.50, price $19.99 Profit $7.49 → Markup = 7.49 ÷ 12.50 = 59.9% · Margin = 7.49 ÷ 19.99 = 37.5%
Pricing Tips
- › Decide whether your target is a markup or a margin before you price. Accountants and most financial statements report margin.
- › Include every cost that scales with each unit: packaging, payment fees, marketplace fees. The PayPal and Stripe fee calculators show what each sale really costs.
- › Selling through a salesperson? Check how a commission eats into the margin.
- › In food service, the same idea is called food cost percentage. See the food cost calculator.
Markup to Margin Conversion Table
| Markup | Gross margin | Price on a $10 cost |
|---|---|---|
| 10% | 9.1% | $11.00 |
| 20% | 16.7% | $12.00 |
| 25% | 20.0% | $12.50 |
| 30% | 23.1% | $13.00 |
| 40% | 28.6% | $14.00 |
| 50% | 33.3% | $15.00 |
| 60% | 37.5% | $16.00 |
| 75% | 42.9% | $17.50 |
| 100% | 50.0% | $20.00 |
| 150% | 60.0% | $25.00 |
| 200% | 66.7% | $30.00 |
Margin = markup ÷ (100 + markup). A 100% markup (doubling the cost, called "keystone" pricing in retail) is a 50% margin.