FIN-02 · Business

Markup Calculator

Price from cost without confusing markup and margin. The calculator shows both percentages side by side and can solve for selling price from a target markup.

LOCALInputs are processed in this browser.
Pricing checkLOCAL COMPUTE
Markup25%
Margin20%
Gross profit$20
Price for target markup$100

iMarkup uses cost as the denominator; margin uses selling price.

METHOD

Use it without guessing.

  1. 01Enter unit cost and selling price.
  2. 02Compare markup with margin.
  3. 03Switch to target markup when testing a new price.
READ THE RESULT

What the number means

Markup is profit divided by cost. If an item costs $80 and sells for $100, markup is 25% while margin is 20%.

A target margin cannot be converted by simply adding that percentage to cost. For a 30% margin, selling price equals cost divided by 0.70.

QUESTIONS

Before you rely on the output

Is 50% markup the same as 50% margin?+

No. A 50% markup on $100 cost gives a $150 price and a 33.3% margin. A 50% margin requires a $200 price.

Should shipping be included in cost?+

Include every variable cost you want the pricing decision to cover, such as inbound freight, packaging or transaction fees.

Can I use any currency?+

Yes. The formula is currency-neutral as long as cost and price use the same currency.