Markup Calculator
Markup vs margin — price from cost, or the percents from a known price. Click any i for detail.
Cost and price
Mode
i
Mode
Apply a markup % to cost, or solve percents from a selling price. |
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|---|---|
Cost ($)
i
Cost
Your landed cost. |
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Markup (%)
i
Markup
Percent of cost. Hidden when you enter price instead. |
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Selling price ($)
i
Price
Used in “solve percents” mode. |
How to use this calculator
- Enter cost.
- Either set a markup % or enter the selling price.
- Read price, markup %, and gross margin %.
Results explained
Markup is profit ÷ cost. Margin is profit ÷ price. A 50% markup is a 33.3% margin.
Quick reference: markup vs margin
They are not interchangeable.
| Item | Detail |
|---|---|
| 25% markup | 20% margin |
| 50% markup | 33.3% margin |
| 100% markup | 50% margin |
| Price | cost × (1 + markup%) |
Discounts come off price; they shrink margin faster than markup.
How the estimate is built
price = cost × (1 + markup%). markup% = (price − cost) / cost. margin% = (price − cost) / price.
Example scenario
$40 cost with 50% markup → $60 price (33.3% margin).
FAQ
Why is margin lower than markup?
Same dollars, bigger denominator (price vs cost).
Wholesale vs retail?
Same formulas. Your target percents differ by channel.
Fees and shipping?
Fold them into cost if you want true landed margin.