Set a selling price from your cost and a markup or margin, convert between markup and margin, and compare pricing strategies against a competitor price.
Basic Markup Calculator
Calculate selling price based on cost and markup percentage.
Markup vs Margin Calculator
Understand the difference between markup and margin.
Tiered Markup Strategy
Compare different markup strategies and volume scenarios.
What this markup calculator does
- Basic: cost and markup percentage to the selling price, the profit and the gross margin.
- Intermediate: four ways in: cost and markup, cost and margin, selling price and cost, or selling price and markup.
- Advanced: from your unit cost, overhead per unit, target margin, expected volume and a competitor’s price, compares five pricing strategies by unit profit and total profit.
Markup versus margin
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. The same sale has a lower margin than markup.
| Measure | Formula |
|---|---|
| Markup | (price − cost) ÷ cost × 100 |
| Margin | (price − cost) ÷ price × 100 |
| Price from markup | cost × (1 + markup ÷ 100) |
| Price from margin | cost ÷ (1 − margin ÷ 100) |
Worked examples: a $100 cost with a 50% markup sells for $150, which is a 33.3% margin. A $60 cost at a 40% margin sells for $100, which is a 66.7% markup. In the Advanced tab, a $20 cost plus $5 overhead at a 40% target margin gives a price of $41.67 and a profit of $16.67 a unit, or $1,666.67 over 100 units.
Things to keep in mind
A margin of 100% is not possible, so the maximum is 99.99%, and cost and price must be greater than zero. These results are estimates for general information only and are not financial, tax or legal advice. Check important figures with a qualified professional.
Frequently asked questions
Is a 50% markup the same as a 50% margin?
No. A 50% markup is a 33.3% margin. A 50% margin needs a 100% markup.
Which should I use to price a product?
Either works if you are consistent. Many businesses quote margin because it relates directly to sales revenue.
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