Markup Calculator
The selling price from a cost and a markup, or the markup from a cost and a price, with the matching profit margin.
Your product
Filled in with example values. Replace them with your own.
Currency symbol
Results update as you type.
Result
Cost $19.99 with a 25% markup: price $24.99, profit $5.00, margin 20.01%
Selling price
$24.99
- ProfitPer item
- $5.00
- MarginProfit as a share of the price
- 20.01%
- Cost
- $19.99
Where the price goes
- Cost
- $19.99
- Markup
- $5.00
- Selling price
- $24.99
How it’s calculated
Price
$19.99 × (1 + 25%) = $24.99
Rounded to the cent
nearest cent = $24.99
Margin
$5.00 ÷ $24.99 = 20.01%
How the markup calculator works
Markup is the amount added to a cost to set a selling price, written as a percentage of the cost. Enter a cost and a markup to get the price, or a cost and a price to get the markup. The matching profit margin is shown alongside, because the two are easily confused.
The formula
Price = Cost × (1 + Markup)
Markup = (Price − Cost) ÷ Cost
Margin = (Price − Cost) ÷ Price
Worked examples
- Cost 19.99 with a 25% markup: 19.99 × 1.25 = 24.9875, so the price is 24.99 and the margin 20.01%.
- Cost 80, price 100: markup 20 ÷ 80 = 25%, margin 20 ÷ 100 = 20%.
Assumptions and limitations
- The markup is applied to the cost you enter. Include shipping, fees or overheads in the cost if you want them covered.
- Prices are rounded to the nearest cent and exclude sales tax, VAT or GST.
Frequently asked questions
Is a 25% markup the same as a 25% margin?
No. A 25% markup on a cost of 80 gives a price of 100 and a profit of 20. That profit is 25% of the cost but only 20% of the price, so the margin is 20%. To reach a 25% margin you would need a markup of 33.33%.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). Going the other way, Markup = Margin ÷ (1 − Margin). The calculator shows both for every result.
What markup should I use?
It depends on your costs, competitors and industry, so the calculator does not suggest one. Work out the price that covers your costs and target profit, then compare it with what customers pay elsewhere.
Can the markup be over 100%?
Yes. A 100% markup doubles the cost, and higher markups are common for low-cost items. Margin, by contrast, can never reach 100% unless the item costs nothing.