Free markup and margin calculator
Enter a cost and either a markup percentage or a target margin percentage to find the selling price, profit amount, and both markup and margin figures at once.
Calculate by
Selling price
$—
Profit
$—
Markup %
—%
Margin %
—%
How to use
- Choose Markup % to enter a percentage added to cost, or Margin % to enter the target profit as a fraction of the selling price.
- Enter the cost of the item.
- Enter the markup or margin percentage.
- The calculator shows selling price, profit, and both markup% and margin% simultaneously.
The formulas
Markup mode (input is markup%):
Selling price = cost × (1 + markup% / 100)
Profit = selling price - cost
Margin% = profit / selling price × 100
Margin mode (input is margin%):
Selling price = cost / (1 - margin% / 100)
Profit = selling price - cost
Markup% = profit / cost × 100
Worked example
Cost $50, markup 50%:
- Selling price: $50 × 1.5 = $75.00
- Profit: $75 - $50 = $25.00
- Markup: 50%
- Margin: $25 / $75 = 33.33%
Now with cost $50, margin target 50%:
- Selling price: $50 / (1 - 0.5) = $100.00
- Profit: $100 - $50 = $50.00
- Markup: $50 / $50 = 100%
- Margin: 50%
Notice that a 50% margin requires a 100% markup — these two numbers describe the same profit dollar amount from opposite sides.
Notes
- Margin is capped at 99.99% — a 100% margin would require an infinite selling price.
- Both markup and margin are shown for every calculation regardless of which mode you use, so you always have the full picture.
- Percentages here are gross margin/markup. Net margin also subtracts overhead, taxes, and other costs from profit before dividing.
Frequently asked
What is the difference between markup and margin?
Markup is profit expressed as a percentage of cost: (price - cost) / cost × 100. Margin is profit expressed as a percentage of the selling price: (price - cost) / price × 100. A 50% markup on a $10 item gives a selling price of $15 and a margin of 33.3%. The two figures are related but are never equal (except at 0%).
Why do both markup and margin matter?
Retailers typically think in margin because it tells them what fraction of revenue is profit. Manufacturers and wholesalers often think in markup because they start from cost. Mixing the two up leads to pricing errors — for example, targeting a 50% markup but accidentally setting a 50% margin results in charging nearly twice as much as intended.
How do I set prices to hit a target margin?
Use margin mode: enter your cost and the margin percentage you want. The calculator solves the formula price = cost / (1 - margin%) and displays the required selling price. For example, a $40 item with a 40% target margin needs to sell for $40 / (1 - 0.40) = $66.67.
What are typical retail margins?
Margins vary widely by industry. Grocery and consumer electronics typically run 5–15%. Clothing and footwear often target 40–60%. Software and digital products can exceed 70%. High margins support higher marketing spend and returns; low-margin categories depend on volume. Always benchmark against your specific industry.
How do I share my pricing scenario?
Click "Share with my numbers" to copy a URL containing your cost, value, and mode. Anyone opening the link sees the same calculation pre-filled.
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