Markup Calculator

Find markup and margin from cost and price, or work out a price or cost from a markup or margin you want.

Formula explained below

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-by-step calculation
StepFormulaResult
Profit$60.00 − $40.00$20.00
Markup$20.00 ÷ $40.0050%
Margin$20.00 ÷ $60.0033.3333%

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.

Markup = (Price − Cost) ÷ CostMargin = (Price − Cost) ÷ PricePrice = Cost × (1 + Markup) = Cost ÷ (1 − Margin)

Worked example

An item costs $40 and sells for $60:

  1. Profit: 60 − 40 = $20
  2. Markup: 20 ÷ 40 = 50%
  3. 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.