Markup Calculator
Set your selling price from cost and markup percentage, and see the resulting profit margin.
Markup Calculator
Set your selling price from cost and markup percentage, and see the resulting profit margin.
How to use the Markup Calculator
- Enter the cost price.
- Enter the markup percentage.
- Click Calculate.
Formula
Selling price = Cost × (1 + Markup%/100)
Profit = Selling price − Cost
Margin% = Profit / Selling price × 100
Example
Cost $50, markup 60%: Price = $50 × 1.60 = $80. Margin = $30/$80 = 37.5%
Step-by-step calculation
- Calculate price: $50 × 1.60 = $80.
- Profit: $80 − $50 = $30.
- Margin: $30 ÷ $80 × 100 = 37.5%.
Real-world uses
- Setting retail prices.
- Product pricing strategy.
- Freelance rate calculation.
Common mistakes
- Confusing markup with margin (they are different: markup is on cost, margin is on selling price).
- Using selling price instead of cost as the base.
- Forgetting to account for overhead costs.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. 50% markup = 33.3% margin.
How do I calculate margin from markup?
Margin = Markup / (1 + Markup). For 50% markup: 0.50 / 1.50 = 33.3%.
Should I use markup or margin for pricing?
Markup is simpler for quick pricing. Margin is preferred in accounting and financial reporting.