How to use this calculator
- Enter or choose cost.
- Enter or choose markup.
- The selling price updates as you type. Use Copy result or Share to keep it.
Formula
Price = Cost × (1 + Markup ÷ 100)
- Cost
- what the item costs you
- Markup
- percentage added on top of cost
Worked example
- Price = 80 × 1.25 = 100.
- Profit = 100 − 80 = 20.
- Margin = 20 ÷ 100 = 20%.
A 25% markup on $80 gives a $100 price and a 20% margin.
What the result means
Convert between the two with: margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin). A 50% markup is a 33.3% margin; a 100% markup is a 50% margin.
Assumptions and limits
- Taxes such as GST or VAT are added after pricing and are not included.
Questions
Is markup the same as margin?
No. Markup is profit divided by cost, margin is profit divided by price. The same sale always has a higher markup percentage than margin percentage.