Markup Calculator
Find markup and margin from cost and price, or work out a price or cost from a markup or margin you want.
Markup
50%
- Margin
- 33.3333%
- Cost
- $40.00
- Price
- $60.00
- Profit
- $20.00
A markup of 50% is a margin of 33.33%.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| Profit | $60.00 − $40.00 | $20.00 |
| Markup | $20.00 ÷ $40.00 | 50% |
| Margin | $20.00 ÷ $60.00 | 33.3333% |
How it works
Choose what you know, then enter the two numbers. Dollar amounts go in as plain numbers, and percents as numbers without the % sign.
Worked example
An item costs $40 and sells for $60:
- Profit: 60 − 40 = $20
- Markup: 20 ÷ 40 = 50%
- Margin: 20 ÷ 60 = 33.33%
Sources
Frequently asked questions
How do you calculate markup?
Subtract the cost from the selling price, then divide by the cost. An item that costs $40 and sells for $60 has a $20 profit, which is a 50% markup.
What is the difference between markup and margin?
Markup is profit as a percent of cost, and margin is profit as a percent of the selling price. The same $20 profit on a $60 sale is a 50% markup but only a 33.3% margin.
How do you find the price from a markup?
Multiply the cost by one plus the markup. A $40 cost with a 50% markup is $40 × 1.5, or $60.
How do you find the price from a margin?
Divide the cost by one minus the margin. A $40 cost and a 40% margin gives $40 ÷ 0.60, or $66.67. A margin can never reach 100%.
Which should I use to set prices?
Either works, as long as you do not mix them up. Retailers often talk in markup, while financial statements usually show margin.