Business Finance
Markup Calculator
Convert between cost, markup percentage, selling price, and profit margin — in any direction you need.
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
Selling Price = Cost × (1 + Markup% ÷ 100)
Markup % = (Selling Price − Cost) ÷ Cost × 100
Margin % = (Selling Price − Cost) ÷ Selling Price × 100
Price from Margin = Cost ÷ (1 − Margin% ÷ 100)
Example: Cost $50 · Markup 40% → Selling Price = $50 × 1.40 = $70 · Profit = $20 · Margin = 20 ÷ 70 = 28.6%
Frequently Asked Questions
- Markup is calculated on cost: (Price − Cost) ÷ Cost. Margin is calculated on the selling price: (Price − Cost) ÷ Price. A 40% markup equals a 28.6% margin — they are not the same number.
- Use the 'Cost + Margin → Price' mode. Enter your cost and desired margin percentage. The formula is Price = Cost ÷ (1 − Margin%). For a 40% margin on a $50 cost: $50 ÷ 0.60 = $83.33.
- Markup is simpler to apply at point of purchase — you know your cost and want to add a percentage on top. Finance teams prefer margin because it directly expresses the percentage of revenue you keep.
- Yes. A 100% markup means you double the cost (e.g. cost $50, price $100). Luxury goods, pharmaceuticals, and some software products regularly see markups of 200–500%. Margin, however, is always below 100%.
- Using Price = Cost ÷ (1 − 0.50) = Cost × 2. So a 50% margin requires a 100% markup. The relationship is: Required Markup = Desired Margin ÷ (1 − Desired Margin).