Finance & Work · Verified formula

Markup Calculator

Find your markup percentage, selling price, profit and margin from cost and price.

Formula verified 3+ known-answer test cases Last verified August 2026

Solve for

Cost ($)

Selling price ($)

Result

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How to use the Markup Calculator

Enter your cost per unit.
Choose whether you know the selling price, or want to solve for a target markup percentage.
Enter the second value.
Select Calculate to see markup %, margin %, profit and selling price together.

Formula

Markup and margin

Markup % = (price − cost) ÷ cost × 100
Margin % = (price − cost) ÷ price × 100

Worked example

Verified example QA passed

Cost: $80
Selling price: $100

Profit = $100 − $80 = $20
Markup % = $20 ÷ $80 × 100 = 25%
Margin % = $20 ÷ $100 × 100 = 20%

Result: 25% markup, 20% margin

Why this matters: Confusing markup and margin when pricing a product quietly erodes profit across every sale — the gap between the two percentages widens the higher your markup goes.

Common mistakes

Adding a target margin percentage directly to cost, which actually produces a lower margin than intended — see the worked example below for the correct method.
Using markup and margin interchangeably in a pricing sheet, producing inconsistent prices across a product line.
Calculating markup from a partial cost figure that leaves out shipping, packaging, or overhead.

Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. The same dollar profit produces a higher markup percentage than margin percentage.

How do I price a product for a 30% margin?

Divide your cost by (1 − 0.30). A $70 cost divided by 0.70 gives a selling price of $100, which yields a 30% margin.

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

No. A 50% markup on a $100 cost gives a $150 price and a 33.3% margin. Margin will always be lower than markup at the same dollar profit.

Related calculators

Formula reviewed against the site calculation methodology. Read our formula reference library or report an issue via contact. For more background, see Markup vs Margin: Why the Same Profit Gives Different Percentages.