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Markup calculator

Price from cost the way most owners do — and see the margin that markup actually leaves you.

Free, no sign-up ·
$
%

How much you add on top of the cost

Selling price

8.00

Profit per item

3.00

Margin this gives you

37.5%

A markup is measured on cost; a margin on the price. They are never the same number.

Markup is profit divided by cost; this calculator turns a cost and a markup into a selling price and shows the margin that price actually delivers.

How markup is calculated

FigureFormula
Selling priceCost × (1 + Markup %)
ProfitPrice − Cost
Margin from markupMarkup ÷ (1 + Markup)
Markup from marginMargin ÷ (1 − Margin)

A 100% markup doubles the cost: an item bought for $5 sells for $10, and the margin is 50%, not 100%. A 50% markup on the same item gives a price of $7.50 and a margin of only 33%. Use the profit margin calculator to work from the margin you need instead.

Questions

How do I calculate a selling price from a markup?
Multiply the cost by one plus the markup. A 60% markup on an item that costs $5 gives a price of $5 × 1.6 = $8.
Is a 50% markup the same as a 50% margin?
No. A 50% markup gives a 33.3% margin; a 50% margin needs a 100% markup.
How do I convert margin to markup?
Divide the margin by one minus the margin. A 40% margin is a markup of 0.40 ÷ 0.60 = 66.7%.
Should I price by markup or by margin?
Margin is safer for planning because your costs and profit targets are usually stated as a share of sales; markup is quicker at the shelf. Either works if you know how they convert.

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