Markup Calculator
Work out what to charge by adding a markup to your cost, or find the markup you're using from your cost and selling price. The result also shows your profit and margin.
Selling price
90.00
Check the highlighted fields to see your result.
- Profit
- 30.00
- Margin
- 33.33%
Results are estimates for information only and do not constitute financial, medical, or legal advice.
What markup is
Markup is how much you add on top of the cost to get the selling price, shown as a percentage of the cost. It's a quick way to set prices: with a 50% markup, something that costs 60 sells for 90.
Markup and margin describe the same profit in different ways, so the calculator shows both. The margin is always smaller than the markup, because it divides the profit by the larger number, the price.
The formulas
Price = cost × (1 + markup ÷ 100)
Markup = (price − cost) ÷ cost × 100
Worked example
A product costs you 60 and you apply a 50% markup.
- Price: 60 × (1 + 0.50) = 60 × 1.50 = 90
- Profit: 90 − 60 = 30
- Margin: 30 ÷ 90 = 0.3333 = 33.33%
Frequently asked questions
What's the difference between markup and margin?
Markup is profit compared with the cost; margin is profit compared with the selling price. A 50% markup on a cost of 60 gives a price of 90 and a profit of 30, which is only a 33.33% margin (30 ÷ 90).
How do I convert markup to margin?
Margin = markup ÷ (1 + markup), using decimals. A 50% markup is 0.50 ÷ 1.50 = 0.3333, a 33.33% margin. The other way, markup = margin ÷ (1 − margin).
Can a markup be more than 100%?
Yes. A 100% markup doubles the cost (often called keystone pricing) and a 200% markup triples it. Many low-cost products have markups well above 100%.
Should I include sales tax or VAT?
Calculate the markup on the cost without taxes, and add the sales tax or VAT to the final price afterwards if it applies.