Markup Calculator

Two calculators: set a price from your cost and markup, or check the markup and margin of an existing price.

Price from cost and markup

Selling price60.00
Profit per unit
20.00
Gross margin
33.3333%

Working

  1. Price = cost × (1 + markup ÷ 100) = 40.00 × 1.5 = 60.00
  2. Margin = profit ÷ price = 20.00 ÷ 60.00 = 33.3333%

Markup and margin from cost and price

Markup50%
Gross margin
33.3333%
Profit per unit
20.00

Working

  1. Markup = (price − cost) ÷ cost = 20.00 ÷ 40.00 = 50%
  2. Margin = (price − cost) ÷ price = 20.00 ÷ 60.00 = 33.3333%

Markup vs margin

markup % = (price − cost) ÷ cost × 100

margin % = (price − cost) ÷ price × 100

Both describe the same profit, but relative to different bases. Markup compares profit with the cost; margin compares it with the selling price. Margin is therefore always smaller than markup for the same item, and can never reach 100%.

Worked example

Cost 40, markup 50%

  1. Price = 40 × 1.5 = 60
  2. Profit = 60 − 40 = 20
  3. Margin = 20 ÷ 60 = 33.33%

A 50% markup gives a 33.33% margin.

Conversion table

MarkupMargin
20%16.67%
25%20%
33.33%25%
50%33.33%
66.67%40%
100%50%
150%60%
200%66.67%
Converting between them (as decimals)

margin = markup ÷ (1 + markup)

markup = margin ÷ (1 − margin)