📈 Markup Calculator

About this Markup Calculator

Markup and margin are the two most confused numbers in pricing. Markup is profit as a percentage of the cost price; margin is profit as a percentage of the selling price. This calculator converts both ways: enter a cost and a markup to get the selling price and the true margin, or enter a cost and a selling price to see what markup and margin you are actually making.

How to use it

1. Enter the cost price of the product.
2. To price it: type a markup percentage and click Price from markup.
3. To check an existing price: type the selling price and click Markup from price.
4. Compare the margin with your overheads — margin must also cover rent, salaries and delivery, not just profit.

Example

A product costing 800 with a 25% markup sells for 1,000; the profit of 200 is a 25% markup but only a 20% margin, because 200 out of the 1,000 selling price is 20%.

Frequently asked questions

Why are markup and margin different?

They divide the same profit by different bases: markup divides by cost, margin divides by selling price. A 50% markup is only a 33.3% margin.

Which one should I use for pricing?

Use markup to set prices quickly from cost, but judge the health of the business by margin, because your expenses are paid out of the selling price.

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