Markup Calculator
This professional-grade markup calculator helps founders, contractors, and finance teams quickly convert costs into profitable selling prices. Enter any pair of known values (e.g., cost and markup %) to instantly get selling price, profit, and gross margin—optimized for mobile, accessible by design, and ready for everyday decisions.
Calculator
Results
Data Source and Methodology
Authoritative Data Source: a third-party source — “Markup Definition,” updated 2024. Available at: https://www.a third-party source.com/terms/m/markup.asp. Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Primary relationships:
$$ \text{Markup \%} = \frac{P_{\text{sell}} - C}{C} \times 100 $$
$$ P_{\text{sell}} = C \times \left(1 + \frac{\text{Markup \%}}{100}\right) $$
$$ \text{Profit} = P_{\text{sell}} - C $$
$$ \text{Margin \%} = \frac{\text{Profit}}{P_{\text{sell}}} \times 100 $$
Markup–Margin conversions:
$$ \text{Margin \%} = \frac{100 \times \text{Markup \%}}{100 + \text{Markup \%}} \quad ; \quad \text{Markup \%} = \frac{100 \times \text{Margin \%}}{100 - \text{Margin \%}} $$
Glossary of Variables
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- Cost (C): The fully loaded internal cost to produce or procure the item/service.
- Markup %: Percentage added on top of cost to reach the selling price.
- Selling Price (P_sell): The price charged to the customer (typically pre-tax).
- Profit: Difference between selling price and cost; Profit = P_sell − C.
- Margin %: Profit expressed over selling price; Margin % = Profit / P_sell × 100.
Worked Example
How It Works: A Step-by-Step Example
Suppose your cost is $250 and you want a 40% markup.
- Compute the selling price: P_sell = 250 × (1 + 40/100) = 250 × 1.40 = $350.
- Compute the profit: Profit = 350 − 250 = $100.
- Compute the margin: Margin % = 100 ÷ 350 × 100 = 28.57%.
If instead you know the selling price and the cost, you can derive markup % and margin % directly from the formulas above.
Frequently Asked Questions (FAQ)
Is markup the same as profit?
No. Markup is a percentage over cost; profit is the absolute dollar (or currency) difference between selling price and cost.
What is a good markup?
It depends on your industry, competition, and cost structure. Many service businesses target 20–60% markup, while some retail categories can exceed 100%.
How do I convert a target margin to markup?
Use: Markup % = 100 × Margin % / (100 − Margin %). For a 30% margin, the markup is 42.857%.
Can I include overhead in cost?
Yes. Best practice is to include all relevant costs (materials, labor, variable and allocated overhead) so the markup truly covers expenses and desired profit.
Does this calculator support markdowns (negative markup)?
Yes. Enter a negative markup to see how a discount affects price, profit, and margin. Note that margin must remain below 100%.
Why is margin always lower than markup for positive profits?
Because margin divides profit by selling price, which is larger than cost. With positive profits, Margin % < Markup %.
Will taxes change the calculations?
The formulas are tax-agnostic. If your pricing is pre-tax, enter pre-tax values; if tax is part of cost or price, keep it consistent across inputs.
Formula (LaTeX) + variables + units
','
\text{Markup \%} = \frac{P_{\text{sell}} - C}{C} \times 100
P_{\text{sell}} = C \times \left(1 + \frac{\text{Markup \%}}{100}\right)
\text{Profit} = P_{\text{sell}} - C
\text{Margin \%} = \frac{\text{Profit}}{P_{\text{sell}}} \times 100
\text{Margin \%} = \frac{100 \times \text{Markup \%}}{100 + \text{Markup \%}} \quad ; \quad \text{Markup \%} = \frac{100 \times \text{Margin \%}}{100 - \text{Margin \%}}
Primary relationships: $ \text{Markup \%} = \frac{P_{\text{sell}} - C}{C} \times 100 $ $ P_{\text{sell}} = C \times \left(1 + \frac{\text{Markup \%}}{100}\right) $ $ \text{Profit} = P_{\text{sell}} - C $ $ \text{Margin \%} = \frac{\text{Profit}}{P_{\text{sell}}} \times 100 $ Markup–Margin conversions: $ \text{Margin \%} = \frac{100 \times \text{Markup \%}}{100 + \text{Markup \%}} \quad ; \quad \text{Markup \%} = \frac{100 \times \text{Margin \%}}{100 - \text{Margin \%}} $
- T = property tax (annual or monthly depending on input) (currency)
- https://www.a third-party reference site.com/terms/m/markup.asp — a third-party reference site.com · Accessed 2026-01-19
https://www.a third-party reference site.com/terms/m/markup.asp
Last code update: 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.