Markup calculator
Markup and margin both start from selling price minus cost, then they divide by different numbers. Markup divides by cost. Margin divides by selling price. Use one mode at a time, so the formulas stay separate.
Do this next
Open another calculator with the numbers you just entered. The values stay in the link. Nothing is sent to a server.
When to use this calculator
Use cost and selling price when both numbers are known and you want both percents. A cost of $80 and a selling price of $100 is a 25 percent markup and a 20 percent margin. Those two sentences are both true, and they are not interchangeable.
Use target markup when you know cost, and you want a selling price from markup = (sell − cost) ÷ cost. Selling price is then cost × (1 + markup ÷ 100). The calculator also reports the margin that appears on that price.
Use target margin when you know cost, and you want a selling price from margin = (sell − cost) ÷ sell. Selling price is then cost ÷ (1 − margin ÷ 100). A margin of 100 percent cannot be used, because that formula would divide by zero.
Read Markup versus margin if you want the same formulas in longer prose.
Try these numbers
- Is a 25 percent markup on an $80 cost the same as a 25 percent margin? Markup is 25%. Margin is 20%.
- What selling price is a 25 percent margin on an $80 cost? About $106.67. That is not the $100 price from a 25 percent markup.
- A cost of zero cannot be used for markup, because markup divides by cost.
Questions
Why are the two percents different?
They share a numerator and use different denominators. Dividing by cost produces markup. Dividing by selling price produces margin.
Which mode should I use to set a price?
If your target is written as markup, use target markup. If your target is written as margin, use target margin. Do not paste one percent into the other mode.
Does this calculator compute a discount?
No. A percent off a list price is on the discount calculator.