How to use
Enter the cost and the markup percentage. You’ll see the selling price, the profit per unit and the profit margin that markup gives you.
If you know the selling price and the markup and need the cost (say, to check a purchase price), choose “Cost from selling price” in the “Find” field.
Formula
selling price = cost × (1 + markup / 100)
Cost $800, markup 25%: price $1,000, profit $200, margin 20%.
Markup vs. margin
Both express profit as a percentage, but of different bases:
- markup is profit as a percentage of cost;
- margin is profit as a percentage of the selling price.
So markup is always higher than margin:
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.33% |
| 100% | 50% |
A margin can never reach 100%; a markup can.
FAQ
How do I find the markup from a known price? Divide profit by cost: (1,000 − 800) / 800 × 100 = 25%. The margin calculator shows both margin and markup.
Is VAT or sales tax included? No. Add it separately with the VAT calculator if your prices must include tax.