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Markup calculator

Enter your cost and the markup you want to add to get the selling price. The margin that price gives you is shown alongside, so you never confuse the two.

Find
Selling price$70.00$50.00 cost + 40% markup
Cost$50.00
Markup amount40% of cost$20.00
Selling price$70.00
MarkupProfit ÷ cost40%
MarginProfit ÷ price28.57%

The same profit is a bigger percentage of cost (markup) than of price (margin). A 40% markup is a 28.57% margin.

Price it on a quote

How to use the markup calculator

  1. Choose whether to find the price or the markup.
  2. Pick the currency and enter the cost.
  3. Enter the markup percentage, or the selling price.
  4. Read the price, the markup amount and the margin.

Markup vs margin

Markup is profit as a share of cost; margin is the same profit as a share of price. Since price is always bigger than cost, the margin is always the smaller number. Quoting a markup when someone expects a margin is one of the most common pricing errors.

MarkupMarginPrice on a $100 cost
10%9.09%$110
25%20%$125
33.33%25%$133.33
50%33.33%$150
100%50%$200
200%66.67%$300

Setting a markup

Start from your costs: the markup has to cover overheads as well as profit. A business with overheads equal to 20% of sales and a 10% profit goal needs a 30% margin, which is a 42.9% markup on cost. Trades often quote a standard markup on materials (for example 15–25%) and charge labour separately.

Questions

How do I calculate markup?

Markup = (price − cost) ÷ cost × 100. Selling for $70 something that costs $50 is a $20 markup, or 40%.

How do I add a markup to a cost?

Multiply the cost by 1 plus the markup. A 40% markup on $50 is $50 × 1.4 = $70.

Is a 50% markup a 50% margin?

No. A 50% markup is a 33.3% margin: on a $100 cost, the price is $150 and the $50 profit is a third of the price. A 50% margin needs a 100% markup.

How do I convert markup to margin?

Margin = markup ÷ (100 + markup) × 100. Markup = margin ÷ (100 − margin) × 100.

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