๐ฒ Markup Calculator
Work out your markup and margin in seconds. Enter cost and selling price โ or cost and markup % โ to instantly see gross profit, markup percentage, margin percentage and break-even price.
What is this tool?
Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of that cost. If a retailer buys a widget for $80 and sells it for $100, the markup is $20 on an $80 cost, or 25 percent. Markup is one of the two core pricing metrics every business uses, the other being margin. While they sound similar, they measure profit from different baselines and are not interchangeable โ a fact that catches out many new founders.
The formula for markup is Markup % = ((Selling Price − Cost) ÷ Cost) × 100. The companion metric, profit margin, is Margin % = ((Selling Price − Cost) ÷ Selling Price) × 100. Notice that markup divides by cost while margin divides by selling price, so the same dollar profit produces two different percentages. On the $80 cost / $100 selling price example above, the profit is $20, the markup is 25 percent, but the margin is only 20 percent.
This markup calculator is built for product pricing, retail, e-commerce, restaurants, trades, and any small business that needs to set prices with confidence. It supports two modes: in Mode 1 you enter the cost and the selling price and the tool derives markup %, margin % and gross profit; in Mode 2 you enter the cost and a target markup % and the tool calculates the selling price you should charge, along with the resulting margin and profit. Everything runs locally in your browser, so your cost data stays private, and the tool accepts both whole numbers and decimals for any currency.How it works
In Mode 1 (I know cost and selling price), the calculator computes gross profit as Selling Price − Cost, then derives Markup % = (Gross Profit ÷ Cost) × 100 and Margin % = (Gross Profit ÷ Selling Price) × 100. In Mode 2 (I know cost and markup %), it first solves for the selling price using Selling Price = Cost × (1 + Markup % ÷ 100), then computes the margin and profit from that price. The break-even price is always equal to the cost โ it is the price at which gross profit is zero.
The table below shows how markup and margin differ for a fixed $100 cost at several common markup levels. Notice that the same markup percentage always maps to a lower margin percentage:
| Markup % | Selling Price | Gross Profit | Margin % |
|---|---|---|---|
| 25% | $125.00 | $25.00 | 20.0% |
| 50% | $150.00 | $50.00 | 33.3% |
| 75% | $175.00 | $75.00 | 42.9% |
| 100% | $200.00 | $100.00 | 50.0% |
| 150% | $250.00 | $150.00 | 60.0% |
| 200% | $300.00 | $200.00 | 66.7% |
A 100% markup (doubling the cost) gives a 50% margin โ not a 100% margin. This is the single most common pricing mistake in small business, so the calculator always shows both numbers side by side to keep them clear.How to use
- Choose your mode โ enter cost and selling price, or cost and markup %.
- Enter your cost price (the amount you pay for the product or service).
- Enter the selling price (Mode 1) or the target markup % (Mode 2).
- Click the Calculate button.
- Read the markup %, margin %, gross profit and break-even price.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. Because the bases are different, the same dollar profit always produces a higher markup percentage than margin percentage. A 50% markup equals a 33.3% margin, and a 100% markup equals a 50% margin.
How is markup calculated?
Markup % = ((Selling Price − Cost) ÷ Cost) × 100. For example, if cost is $80 and selling price is $100, the profit is $20, so the markup is ($20 ÷ $80) × 100 = 25%.
How do I convert markup to margin?
Use the formula Margin % = Markup % ÷ (1 + Markup %). For a 50% markup: 0.50 ÷ 1.50 = 0.333, which is a 33.3% margin. This calculator shows both figures automatically so you never have to convert by hand.
What is a good markup percentage?
It depends heavily on the industry. Grocery stores may use markups of 15-25%, clothing retailers 100-300%, restaurants 60-300% on food, and jewelry 200-400%. The right markup for you depends on your costs, competition, and the margin you need to stay profitable.
What is the break-even price?
The break-even price is the selling price at which gross profit is zero โ in other words, the price equal to your cost. Selling below this point means losing money on every unit. This calculator always displays it so you know your absolute price floor.
Can I use this for services as well as products?
Yes. The math is identical. Enter your cost of delivering the service (including labor, materials and overhead) as the cost, and your quoted price as the selling price. The calculator will show your service markup and margin just as it does for a physical product.
This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.
Tips & Advice
Always know whether you are quoting markup or margin โ a customer or partner who says "20%" may mean either, and the dollar difference on a large order can be significant. Most retailers target a markup of 50% to 100% depending on category, while service businesses often work in margin terms. When negotiating with wholesalers, they typically speak in markup, so convert to margin before comparing with your own financials. A useful shortcut: to turn a markup into a margin, use Margin % = Markup % ÷ (1 + Markup %); to go the other way, Markup % = Margin % ÷ (1 − Margin %). Watch out for loss leaders and promotional discounts โ a 20% discount on a 25% markup item actually loses money, because the sale price drops below cost. Always run the numbers through this calculator before committing to a sale price or a discount campaign, and revisit your markup when supplier costs change, because a fixed selling price with rising costs silently erodes your margin every month.
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Sources & References
Last reviewed: August 2026.
- U.S. Small Business Administration (SBA) โ Pricing your products and services guide (sba.gov).
- Internal Revenue Service (IRS) โ Business expenses, cost of goods sold and gross profit guidance (irs.gov).
- Bureau of Labor Statistics (BLS) โ Retail and wholesale pricing benchmarks (bls.gov).
Limitations
This calculator computes markup and margin from the figures you enter and does not account for taxes, payment processing fees, shipping, returns, or volume discounts. For multi-product businesses, calculate markup per product line separately.