Markup Calculator
Calculate markup percentage, profit margin, and selling price from cost.
Inputs
$
$
Results
Markup
50.00%
Profit Margin
33.33%
Profit
$25.00
Selling Price
$75.00
Formula
Markup = (Selling Price - Cost) / Cost × 100\nMargin = (Selling Price - Cost) / Selling Price × 100
Markup is based on cost; margin is based on selling price. A 50% markup is equivalent to a 33.3% margin.
Worked Example
Cost: $50 | Selling Price: $75
Markup = ($75 - $50) / $50 × 100 = 50%
Margin = ($75 - $50) / $75 × 100 = 33.3%
Profit: $25
When to Use This Calculator
Use to set prices, understand the relationship between markup and margin, or convert between the two.
Important Assumptions
- Single product pricing.
- No volume discounts or variable pricing.
Common Mistakes to Avoid
- Confusing markup with margin — a 50% markup is NOT a 50% margin.
- Setting markup too low to cover overhead costs.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage increase over cost. Margin is the percentage of the selling price that is profit. They use different denominators.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, 50% markup = 50 / 150 = 33.3% margin.
Related Calculators
Methodology: This calculator uses standard financial formulas documented above. All calculation engines are unit-tested for accuracy.View full methodology
Disclaimer: This calculator provides estimates for educational purposes only. Results do not constitute financial advice.Full disclaimer