Case 1
- Cost
- 50
- Markup
- 40%
70.00
Open with these valuesMarkup Calculator
70.00
Result: 70.00Markup is profit measured against what the item cost you: price = cost × (1 + markup ÷ 100). A cost of 50 at 40 % markup sells for 70, of which 20 is profit. Margin measures the same 20 against the price of 70 instead, which is why it is always the smaller number.
The numbers at a glance
Held fixed: Cost 50.00.
| Markup (%) | Result |
|---|---|
| 0.00 | 50.00 |
| 10.00 | 55.00 |
| 20.00 | 60.00 |
| 30.00 | 65.00 |
| 40.00Your value | 70.00 |
| 50.00 | 75.00 |
| 60.00 | 80.00 |
| 70.00 | 85.00 |
| 80.00 | 90.00 |
Worked examples
Case 2
- Cost
- 80
- Markup
- 25%
100.00
Open with these valuesCase 3
- Cost
- 12.5
- Markup
- 40%
17.50
Open with these valuesHow it's calculated
Selling price = cost × (1 + markup ÷ 100)
- StepEnter what the item cost you.
- StepEnter the markup as a percentage of that cost.
- ResultRead the selling price; the profit is the difference.
Reference table
| Cost, markup (%) | Profit | Selling price |
|---|---|---|
| 200, 0 | 0 | 200 |
| 12.50, 40 | 5.00 | 17.50 |
| 80, 25 | 20 | 100 |
| 50, 40 | 20 | 70 |
| 100, 50 | 50 | 150 |
| 100, 100 | 100 | 200 |
Questions
How do I calculate markup?
Multiply the cost by the markup percentage to get the profit, then add it to the cost. A cost of 50 with a 40 % markup is 50 × 1.40 = 70, of which 20 is profit.
What is the difference between markup and margin?
Markup measures profit as a percentage of cost; margin measures the same profit as a percentage of the selling price. Because the price is the larger base, the margin is always the smaller number. A profit of 20 on a cost of 50 is a 40 % markup but a 28.6 % margin on the price of 70.
How do I convert a markup into a margin?
Divide the markup by one plus the markup: margin = markup ÷ (1 + markup). A 40 % markup becomes 0.40 ÷ 1.40, about 28.6 %. To go the other way, divide the margin by one minus the margin.
What markup percentage should I use?
It depends on the trade — retail markups often run from 50 % to well over 100 %, groceries far lower. Set it high enough that the profit still covers overheads, shipping and tax after the sale, not just the item itself.
Does the profit shown include my other costs?
No. This is gross profit over the item cost only. Overheads, shipping, payment fees, returns and sales tax all come off afterwards, so what you keep per sale is lower.
Sources and last check
Information, not professional advice.