Markup Calculator
Turn a cost and markup into a selling price, profit and margin.
How to use the Markup Calculator
- Enter your cost per item.
- Enter the markup percentage.
- See the selling price, profit and margin.
Price = Cost × (1 + markup%) · Margin% = profit ÷ price
About the Markup Calculator
Markup is the percentage you add to your cost to reach a selling price. This calculator applies Price = Cost × (1 + markup ÷ 100), then reports the profit per item and — importantly — the profit margin that markup actually produces, margin being profit ÷ price × 100.
Showing the margin alongside is the whole point, because markup and margin are not the same number and are constantly confused. Markup measures profit against cost; margin measures the same profit against the selling price. A 50% markup on a cost of 40 gives a price of 60 and a profit of 20 — which is a 33.3% margin, not 50%. Markup is always the higher figure, and the gap widens as they rise: 100% markup is a 50% margin, 300% markup is a 75% margin. The profit margin calculator works the other direction, from cost and price to both percentages.
What it does not include: this is a gross calculation from the single cost you type in. Overheads, labour, shipping, storage, payment and marketplace fees, returns and tax are all outside it, so the profit shown sits before every one of them. The price it produces is tax-exclusive — add VAT or sales tax on top if your customers pay it — and it takes no view on whether the market will bear that price.
Frequently asked questions
Is markup the same as margin?
No. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup is a 33.3% margin. Markup is always the bigger of the two, which is why mixing them up flatters your numbers.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup), using decimals. A 50% markup: 0.5 ÷ 1.5 = 0.333, so a 33.3% margin. This calculator does the conversion for you on every result.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin), using decimals. A 33.3% margin: 0.333 ÷ 0.667 = 0.5, so a 50% markup. A 50% margin needs a 100% markup — doubling the cost.
Should the selling price include tax?
No. The price this produces is tax-exclusive. If your customers pay VAT, GST or sales tax, that goes on top of this price — it is collected, not earned, so it is not part of your profit.
Is there a standard markup I should use?
There is no universal figure. Typical markups vary enormously by industry, business model, stock turnover and how much overhead the gross profit has to cover. What the calculator can tell you is exactly what margin a given markup yields — the decision itself is yours.