Markup and Margin Calculator
Markup and margin are not the same thing. Enter your cost and one other figure, and see the selling price, profit, markup and margin together.
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Markup and Margin Calculator by TheCalcTools
How the Markup and Margin Calculator works
Enter what the item costs you and choose which second figure you know: the selling price, the markup or the margin. The calculator works out the other three.
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup on a $40 item gives a $60 price, but the margin is only 33.3%, because the profit is a third of the price. Mixing the two up is a common pricing mistake, so always check which one a supplier or competitor means.
The formula
Worked example
An item costs $40 and you add a 50% markup:
| Cost | $40 |
|---|---|
| Markup | 50% |
- Price = 40 × 1.5 = $60.00.
- Profit = $60.00 − $40 = $20.00.
- Margin = $20.00 ÷ $60.00 = 33.33%.
Result:
| Selling price | $60.00 |
|---|---|
| Profit per item | $20.00 |
| Markup | 50.00% |
| Gross margin | 33.33% |
Frequently asked questions
What is the difference between markup and margin?
Markup is measured against cost; margin is measured against the selling price. Margin is always smaller than markup for the same price, and it can never reach 100%.
How do I get a 40% margin?
Divide your cost by 0.60. A $40 cost gives a $66.67 price. Choose “Margin %” above to check.
What is gross margin?
Selling price minus the direct cost of the goods, as a share of the price. It excludes overheads like rent and salaries, so net profit is lower.
Does this include tax or fees?
No. Add platform fees, shipping and taxes to your cost first for a truer result.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.