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Markup Calculator

Calculate markup, profit, margin, selling price from markup, and cost price from markup.

  • markup
  • pricing markup
  • cost markup
  • selling price markup
  • margin vs markup

Required for direct calculation and solving for selling price.

Required for direct calculation and solving for cost price.

Required when solving for selling price or cost price.

Required when solving selling price from desired profit margin.

Status: initial

Results

Awaiting calculation

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Markup without margin confusion

Explore the markup calculator result visually while keeping this page's detailed guidance and examples.

Markup without margin confusion
50%
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Use this result well

  1. 1Verify the calculator inputs.
  2. 2Compare the key result relationships.
  3. 3Review the page guidance before acting.

A 50% markup does not produce a 50% margin.

Calculator guide

Introduction

The Markup Calculator helps sellers, businesses, freelancers, and ecommerce teams calculate markup from cost and selling price, or solve for price from a target markup.

What is markup?

Markup shows how much a selling price is increased above cost. It uses cost price as the denominator, while profit margin uses selling price. This page keeps both visible so pricing decisions do not mix the two.

Markup formula

Markup is profit divided by cost price, multiplied by 100. Profit margin uses selling price as the denominator, so markup and margin usually produce different percentages.

Variable explanations

Understand what each input and result means before calculating.

Cost price

The cost to buy, make, or deliver the product or service.

Selling price

The price charged to the customer.

Profit

Selling price minus cost price.

Markup

Profit as a percentage of cost price.

Profit margin

Profit as a percentage of selling price.

Target margin

Desired profit margin used to solve for selling price from cost.

Break-even discount

The approximate discount room before selling price reaches cost.

Reviewed by the Calculator.org.in Editorial Team

Formula behavior, validation cases, explanatory examples, and cited sources are checked before publication. This review supports educational accuracy and is not a substitute for qualified professional advice.

Last reviewed: 2026-08-03

Review process

Formula guide

See the calculation logic, variable definitions, and practical meaning.

Markup

Markup = (Selling Price - Cost Price) / Cost Price x 100

  • Selling price is customer price.
  • Cost price is product or service cost.

Markup measures price increase relative to cost.

Selling price from markup

Selling Price = Cost Price x (1 + Markup / 100)

  • Markup is the target increase over cost.

Use this to price an item from cost and a desired markup.

Selling price from margin

Selling Price = Cost Price / (1 - Margin / 100)

  • Margin must be below 100%.
  • Margin is profit divided by selling price.

Use this when a business target is expressed as gross margin instead of markup.

Cost price from markup

Cost Price = Selling Price / (1 + Markup / 100)

  • Selling price must be greater than zero.

Use this to estimate allowable cost for a target markup and known selling price.

Markup to margin

Margin = Markup / (1 + Markup / 100)

  • Markup and margin are both percentages, but use different denominators.

This conversion explains why a 50% markup is only a 33.33% margin.

Worked examples

Follow realistic inputs through the calculation step by step.

1

Worked example

Retail markup

  1. 1Cost is 60.
  2. 2Selling price is 100.
  3. 3Markup is 66.67%.
2

Worked example

Price from markup

  1. 1Cost is 80.
  2. 2Target markup is 50%.
  3. 3Selling price is 120.
3

Worked example

Ecommerce pricing

  1. 1Include product, packaging, platform, and payment costs.
  2. 2Enter selling price.
  3. 3Review markup and margin.
4

Worked example

Freelance pricing

  1. 1Estimate direct project cost.
  2. 2Choose markup.
  3. 3Check resulting selling price.
5

Worked example

Target gross margin

  1. 1Choose Find selling price from margin.
  2. 2Enter cost and target margin.
  3. 3Review the equivalent markup and price multiplier.
6

Worked example

Discount planning

  1. 1Calculate the selling price.
  2. 2Review break-even discount.
  3. 3Keep planned promotions below the point where price reaches cost.

Common mistakes

Avoid these common input and interpretation errors.

Confusing markup and margin

Markup uses cost price; margin uses selling price.

Leaving out fees

Platform, payment, shipping, labor, and returns can reduce actual profitability.

Using margin targets as markup targets

A 40% margin requires a 66.67% markup, not a 40% markup.

Forgetting discount room

A price can look profitable before discounts but reach cost after coupons or seasonal markdowns.

Treating markup as profit

Markup is a percentage; profit is a currency amount.

Ignoring market price

A calculated price may still need market validation.

Frequently asked questions

Quick answers to the questions users ask most often.

What does this Markup Calculator calculate?
It calculates markup, profit, profit margin, selling price from markup, and cost price from markup.
What is markup?
Markup is profit divided by cost price, multiplied by 100.
What is the markup formula?
Markup equals selling price minus cost price, divided by cost price, times 100.
How do I calculate selling price from markup?
Use selling price = cost price x (1 + markup / 100).
How do I calculate selling price from target margin?
Use selling price = cost price / (1 - margin / 100).
How do I calculate cost price from markup?
Use cost price = selling price / (1 + markup / 100).
Is markup the same as margin?
No. Markup uses cost price as the denominator, while margin uses selling price.
Why is markup higher than margin?
For the same profit, cost price is usually lower than selling price, so the markup percentage is higher.
How do I convert markup to margin?
Use margin = markup / (1 + markup / 100).
How do I convert margin to markup?
Use markup = margin / (1 - margin / 100).
Can markup be zero?
Yes. A 0% markup means selling price equals cost price.
Can markup be over 100%?
Yes. A 100% markup means selling price is twice the cost price.
Can profit be negative?
Yes. If selling price is below cost price, profit and markup are negative in direct calculation.
Does this include tax?
Only if tax is included in the entered cost or selling price.
Does this include shipping?
Only if shipping is included in the entered cost.
Can ecommerce sellers use this?
Yes, but include platform, payment, packaging, shipping, and return costs where relevant.
What is break-even discount?
It is the discount percentage that would reduce selling price down to cost before other fees. Going beyond it creates a loss on the entered cost.
Can service businesses use this?
Yes. Use direct service delivery cost as cost price and client invoice amount as selling price.
Is this business advice?
No. It is an educational calculator and not business, tax, financial, or pricing advice.

References

Sources used to support the calculator guidance.

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Version history

A transparent record of calculator content updates.

Updated 2026-08-03
  • 1.1.0 · 2026-08-03

    Added target-margin pricing, markup-margin conversion, pricing breakdown, break-even discount, and pricing checklist.

  • 1.0.0 · 2026-07-05

    Initial markup calculator release.