Markup Calculator
Turn cost and markup into a selling price, profit and gross margin — or work backwards from a target margin.
Enter a unit cost and a markup percentage to see the selling price, profit and margin.
Markup to margin conversion table
| Markup | Gross margin | Price on a 100 cost |
|---|
How it works
Markup and margin are two different views of the same sale. Markup is the profit as a percentage of what the item cost you: selling price = cost × (1 + markup ÷ 100). Gross margin is the same profit as a percentage of what the customer pays: margin = (price − cost) ÷ price × 100. That is why a 50% markup is only a 33.33% margin — a $40 item marked up 50% sells for $60, and the $20 profit is half the cost but only a third of the price.
Working backwards from a target margin uses price = cost ÷ (1 − margin ÷ 100), so a $40 item at a 40% margin has to sell for $66.67. A margin of 100% or more is impossible, because it would need an infinite price — the calculator tells you so instead of printing a nonsense number. Quantity multiplies the per-unit profit into total revenue and total profit.
Everything is plain arithmetic running in JavaScript in your browser: no numbers leave your device, there is no sign-up and there are no ads. Figures are rounded to two decimals for display, and the copy and download buttons give you the whole breakdown as text.
Frequently asked questions
What is the difference between markup and margin?
Markup measures profit against what the item cost you, margin measures the same profit against what the customer pays. A $40 item marked up 50% sells for $60, so the $20 profit is 50% of the cost but only 33.33% of the price. The calculator shows both figures side by side so you never quote one when you meant the other.
How do I calculate the selling price from cost and markup?
Multiply the cost by one plus the markup divided by 100: price = cost × (1 + markup ÷ 100). A cost of $40 with a 50% markup gives $40 × 1.5 = $60. Enter the two numbers in the first mode above and the price, per-unit profit and gross margin appear as you type.
What markup do I need to hit a 40% margin?
Use price = cost ÷ (1 − margin ÷ 100), so a $40 cost at a 40% margin must sell for $66.67 — a 66.67% markup. Pick the "cost + target margin" mode to do this in reverse. A margin of 100% or more is impossible because it would require an infinite price, and the tool says so instead of showing a bogus number.