Markup is a percentage added to your cost. Margin is the percentage of the selling price that is profit. Enter cost and the markup you want to apply.
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Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
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What does this calculator estimate?
Percentage markup calculator: get sell price from cost and markup percent, and see margin versus markup side by side. Editable rates, free, no signup.
How this calculator works
Formula
Selling price = cost x (1 + markup %); margin = (price - cost) / price x 100.
Worked example
$85 cost with a 15% markup: $12.75 added, a $97.75 selling price, which is a 13.04% profit margin.
Assumptions to verify
- Markup is applied to cost; margin is expressed as a share of the selling price.
- Markup percentage and margin percentage are different numbers for the same sale.
- Values are treated as entered; no sales tax or other fees are included.
Frequently asked questions
Why is margin less than markup for the same sale?
Because markup is a percentage of the lower cost figure, while margin is a percentage of the higher selling price. A 15% markup on cost yields roughly a 13% margin.
How do I set a price for a desired margin?
Selling price = cost ÷ (1 − desired margin ÷ 100). For a 30% margin, sell at cost ÷ 0.70.
Cite this tool
BoringToolsKit. “Percentage Markup Calculator.” boringtoolskit.com/percentage-markup-calculator/. Free to reference in articles, syllabi, and answer posts with a link.
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Worked example: $40.00 cost at 75% markup
Take a part that costs $40.00 with a 75% markup. Markup amount = 40.00 x 75 / 100 = $30.00. Selling price = 40.00 + 30.00 = $70.00. Profit margin = 30.00 / 70.00 = 0.428571, reported as 42.86%. The $30.00 is 75% of what you paid but only 42.86% of what the customer pays, which is why the two percentages never match.
Margin is fixed by markup alone: margin = markup / (100 + markup) x 100, so 75 / 175 = 42.86%. The pairs are worth memorizing: 33.33% markup is 25.00% margin, 100% markup is 50.00% margin, and nothing ever reaches 100% margin. Inverting for a target works the same way: a 35% margin requires 35 / 65 = 53.85% markup, and 40.00 x 0.5385 = $21.54 of markup on a $61.54 price gives 21.54 / 61.54 = 35.00% margin.
Boundary cases and what the number leaves out
At 0% markup the price equals the cost: $40.00 in, $40.00 out, $0.00 markup, 0.00% margin. That is break-even, not a loss. Negative inputs never reach the math: a cost of -10 or a markup of -5 returns 'Check your inputs', so the tool cannot model discounts or supplier rebates as negative markup.
Margin climbs slower than markup as both grow. 100% markup gives 50.00% margin, 400% gives 80.00%, 900% gives 90.00%, 1800% gives 94.74%, 9900% gives 99.00%. Hitting 95% margin takes 1900% markup, and doubling markup from 900% to 1800% buys only 4.74 points of margin.
Everything not in the cost line stays out of the result. Add $3.50 of shipping to the example and the base becomes $43.50: a 75% markup now shows $76.13 instead of $70.00, while margin still reads 42.86%, because margin depends only on the markup percentage. Payment fees, taxes, and unsold stock have to be folded into cost yourself before markup is applied.