Markup Calculator: Markup Percentage and Profit Margin
Find the markup percentage on a product — how much you have added to its cost to arrive at the selling price.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Profit margin | Markup | Profit |
|---|---|---|---|
| $80 price · $50 cost | 37.50% | 60.00% | $30.00 |
| $120 price · $40 cost | 66.67% | 200.00% | $80.00 |
| $25 price · $20 cost | 20.00% | 25.00% | $5.00 |
| $200 price · $250 cost | -25.00% | -20.00% | -$50.00 |
How This Calculator Works
Enter what the item costs you and the price you sell it for. The calculator finds the profit per unit, then expresses it as markup — profit over cost — and as margin — profit over price. Pricing decisions are usually set as a markup on cost, so this is the figure to work with when you price a product.
The Formula
Profit Margin and Markup
Markup = (Revenue − Cost) / Cost × 100 — the same profit measured against cost instead of revenue
Worked Example
An item that costs you $50 and sells for $80 earns $30 of profit. That is a 60% markup on cost. The same $30 is a 37.5% profit margin on the selling price — the identical profit, expressed as a different and smaller percentage.
Key Insight
Markup and margin are constantly confused, and the gap is wide: a 60% markup is only a 37.5% margin. Setting a price using a margin target as if it were a markup quietly underprices the product every single time.
Frequently Asked Questions
What is markup?
Markup is the profit on a sale expressed as a percentage of cost. A $50 item sold for $75 carries a 50% markup, because the $25 profit is half of the cost.
How is markup different from margin?
Markup measures profit against cost; margin measures the same profit against the selling price. Markup is always the higher percentage, because cost is smaller than price.
How do I set a price from a markup?
Multiply the cost by one plus the markup as a decimal. A $50 cost with a 60% markup gives a selling price of $50 multiplied by 1.6, which is $80.
Why do markup and margin get confused?
They use the same profit figure, so the numbers feel interchangeable. They are not — pricing on the wrong one distorts profit, which is why this calculator shows both side by side.
What markup should I use?
It depends on your costs, competition, and the margin you need after overheads. Work backwards from the margin your business requires, then convert it to the equivalent markup.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources.
Methodology & Review
Markup is profit measured against cost; margin is the same profit measured against the selling price. The calculator reports both from the cost and price entered, with no allowance for overheads or tax.
Written by Ugo Candido · Last updated May 17, 2026.