Markup Calculator
Enter your cost and desired markup % to get the selling price, profit and resulting margin
How to Calculate Markup
Markup is how much you add to the cost of a product to set its selling price, expressed as a percentage of cost.
Profit = Selling Price − Cost
Margin % = (Profit ÷ Selling Price) × 100
Worked Example
A product costs $60 and you apply a 50% markup. Selling price = $60 × 1.50 = $90. Profit is $30. The resulting margin is ($30 ÷ $90) × 100 = 33.33%. Notice the margin (33.33%) is lower than the markup (50%) — they are never the same number.
| Cost | Markup % | Selling Price | Margin % |
|---|---|---|---|
| $60 | 25% | $75.00 | 20.00% |
| $60 | 50% | $90.00 | 33.33% |
| $60 | 100% | $120.00 | 50.00% |
Markup and margin are easy to confuse and the mistake is expensive. A 50% markup is only a 33% margin. Read the full explanation in our margin vs markup guide.
Markup vs Margin — Quick Reference
Markup is profit over cost; margin is profit over selling price. Because selling price is always larger than cost, the margin percentage is always smaller than the markup percentage for the same product. Use this markup calculator to set prices from cost, and the gross profit margin calculator to check the resulting margin.
Frequently Asked Questions
What is markup?
+Markup is the amount added to the cost of a product to reach its selling price, expressed as a percentage of the cost. A $60 item with 50% markup sells for $90.
How do you calculate markup?
+Multiply the cost by (1 + markup% ÷ 100). For a $60 cost and 50% markup: $60 × 1.5 = $90 selling price, giving $30 profit.
What is the difference between markup and margin?
+Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. A 50% markup equals a 33.3% margin on the same product.
Is markup always higher than margin?
+Yes. Because the selling price is always greater than the cost, the markup percentage is always larger than the margin percentage for the same item.
How do I convert markup to margin?
+Margin % = markup ÷ (100 + markup) × 100. A 50% markup converts to 50 ÷ 150 × 100 = 33.33% margin.