What is the difference between markup and margin?

Markup is profit divided by cost; margin is profit divided by selling price. A 50% markup on USD 40 cost gives USD 60 price (USD 20 profit), which is a 33.33% margin. The tool shows both.

What is the formula for selling price from cost and markup?

Selling price = cost × (1 + markup ÷ 100). For cost USD 40 and 50% markup: 40 × 1.50 = USD 60.

How do I back-solve the markup percentage from a price?

Markup % = (price − cost) ÷ cost × 100. For price USD 60 and cost USD 40: (60 − 40) ÷ 40 × 100 = 50%.

Can the markup be more than 100%?

Yes — luxury and many digital products carry 200–500% markups. The calculator accepts any non-negative number.

Does the price include taxes or fees?

No. Markup is a pre-tax, pre-discount figure. Use our Sales Tax Calculator separately if you need the tax-inclusive price.

Is the result private?

Yes. Everything runs in your browser; nothing is sent to a server.

Markup Calculator

Find selling price from cost and markup percent, or back-solve markup from a price.

Written by Golam Rabbani, Founder & Lead Engineer

This interactive tool requires JavaScript. Read the formula and worked example below; you can compute the result by hand.

How to use this markup calculator

Choose "Cost + Markup %" to solve for a selling price, or "Cost + Selling price" to back-solve the markup.
Enter the cost per unit and select a currency.
Type the markup percentage or the selling price, depending on which mode you picked.
Press Calculate to see the selling price, markup amount, and gross margin.
Use Copy to share the result, or Reset to clear and price another item.

About this markup calculator

Markup is the percentage added to a cost to set a selling price. The two standard formulas are: selling price = cost × (1 + markup ÷ 100), and markup % = (selling price − cost) ÷ cost × 100. The tool also shows the related gross-margin figure, defined as profit ÷ selling price × 100. These definitions match the U.S. Small Business Administration's pricing primer (sba.gov) and Investopedia's standard "Markup vs Margin" reference.

Worked example: a product costs USD 40 and you want a 50% markup. Selling price = 40 × 1.50 = USD 60. Markup amount = USD 20. Gross margin = 20 ÷ 60 × 100 ≈ 33.33%. Notice how markup % (50%) and margin % (33.33%) are different ratios — confusing them is the #1 retail-pricing mistake. In the second mode, give the tool a USD 60 selling price and a USD 40 cost and it returns markup 50% and margin 33.33% to confirm. Currency is a label only; there is no exchange-rate lookup.

FAQ

What is the difference between markup and margin?: Markup is profit divided by cost; margin is profit divided by selling price. A 50% markup on USD 40 cost gives USD 60 price (USD 20 profit), which is a 33.33% margin. The tool shows both.
What is the formula for selling price from cost and markup?: Selling price = cost × (1 + markup ÷ 100). For cost USD 40 and 50% markup: 40 × 1.50 = USD 60.
How do I back-solve the markup percentage from a price?: Markup % = (price − cost) ÷ cost × 100. For price USD 60 and cost USD 40: (60 − 40) ÷ 40 × 100 = 50%.
Can the markup be more than 100%?: Yes — luxury and many digital products carry 200–500% markups. The calculator accepts any non-negative number.
Does the price include taxes or fees?: No. Markup is a pre-tax, pre-discount figure. Use our Sales Tax Calculator separately if you need the tax-inclusive price.
Is the result private?: Yes. Everything runs in your browser; nothing is sent to a server.