How do I calculate markup percentage and price my products? Find out instantly with our free calculator. Work out the selling price from cost and markup, find the markup or profit margin on any sale, and convert between markup and margin in seconds.
Select a calculation mode below, enter your numbers, and hit Calculate to see the selling price, markup, margin, and profit — with a full step-by-step breakdown.
Real worked examples using the exact formulas built into this calculator. Try these numbers yourself to verify the results.
Your product costs $50 and you want a 40% markup.
Selling price = $50 × (1 + 0.40) = $70.00
Profit = $70 − $50 = $20.00
Profit margin = $20 ÷ $70 × 100 = 28.57%
Your product costs $50 and sells for $70.
Markup = ($70 − $50) ÷ $50 × 100 = 40%
Profit margin = ($70 − $50) ÷ $70 × 100 = 28.57%
Profit = $20.00 per unit
Selling price = $80 × 1.25 = $100.00
Profit = $100 − $80 = $20.00
Profit margin = $20 ÷ $100 × 100 = 20%
A 33.33% margin equals a 50% markup:
Markup = 33.33 ÷ (100 − 33.33) × 100 = 50%
A 100% markup equals a 50% margin:
Margin = 100 ÷ (100 + 100) × 100 = 50%
How much you add on top of your cost, expressed as a percentage of the cost.
How much of the selling price is profit — always calculated against the price, not the cost.
Used in Mode 1. Example: $50 cost at 40% markup → $50 × 1.40 = $70.
Example: 40% markup → 40 ÷ 140 × 100 = 28.57% margin.
Example: 28.57% margin → 28.57 ÷ 71.43 × 100 = 40% markup.
Because markup is based on the cost (the smaller number) and margin is based on the selling price (the larger number), a given markup is always a smaller margin. The converter mode in this calculator handles both directions automatically, and it guards against impossible inputs such as a margin of 100% or more.
Enter your cost and target markup to get the ideal selling price, profit, and margin in one click.
See both the markup percentage and the profit margin for any cost and selling price pair.
Convert between markup and margin in both directions with the built-in conversion mode.
No sign-up, no data stored. Your numbers are calculated instantly in your browser.
Markup is the amount you add to the cost of a product to arrive at its selling price, expressed as a percentage of the cost. It is one of the most common ways small businesses and retailers set prices. The markup percentage tells you how much above your cost you are selling — not how much of the final price is profit.
If you buy a product for $50 and sell it for $70, your markup is (70 − 50) ÷ 50 × 100 = 40%.
Notice the difference between markup and margin: the 40% markup in this example equals a 28.57% profit margin, because margin is calculated against the selling price ($20 profit ÷ $70 price) rather than the cost. Many business owners confuse the two — which is exactly why this calculator shows both numbers side by side.
Markup and margin are frequently confused, but they measure different things. Markup is the percentage of the cost that you add on top. Margin is the percentage of the selling price that is profit. Using the wrong one can make you believe you are earning more than you actually are.
Markup % = (Price − Cost) ÷ Cost × 100. A 40% markup on a $50 cost adds $20, giving a $70 selling price. Markup answers: "How much extra am I charging compared to what I paid?"
Margin % = (Price − Cost) ÷ Price × 100. A $20 profit on a $70 sale is a 28.57% margin. Margin answers: "How much of every sales dollar is profit?"
Because markup is based on the smaller number (cost), it is always larger than the equivalent margin. A 50% markup equals a 33.3% margin, and a 100% markup — doubling your cost, known as keystone pricing — equals a 50% margin. The table below shows the most common conversions.
| Markup | Equivalent Margin | Margin | Equivalent Markup |
|---|---|---|---|
| 25% | 20.00% | 20% | 25.00% |
| 50% | 33.33% | 33.33% | 50.00% |
| 100% | 50.00% | 50% | 100.00% |
| 150% | 60.00% | 60% | 150.00% |
Cost-plus pricing is the simplest and most reliable pricing strategy for small businesses, retailers, and freelancers. The idea is to add a consistent markup to your true cost so every sale covers your expenses and earns a predictable profit.
Review your prices regularly. If your costs rise, a fixed dollar markup quietly shrinks your margin — recalculate whenever your suppliers change prices. And always compare your margin against industry benchmarks: groceries often run 10–20% margins, clothing 50–100%, and jewelry can exceed 200%.
Educational Purposes Only: This markup calculator is provided for educational and informational purposes only. Results are estimates based on the numbers you enter and standard pricing formulas. They do not constitute financial, accounting, tax, or business advice. Actual pricing decisions depend on your industry, competition, demand, overhead, and legal requirements. Always review your full costs — including taxes, fees, and overhead — and consult a qualified professional before setting prices.