Markup and Margin Calculator — Price, Profit, Margin and Markup from Any Two

How to use the markup and margin calculator

1. Choose what you know under I know: Cost and selling price, Cost and target margin, Cost and markup, Selling price and margin, Selling price and markup, or Cost and profit per unit.
2. Enter the first figure in Cost or selling price.
3. Enter the second figure (price, margin %, markup % or profit).
4. Optionally set Units (for totals) to see revenue and profit for a whole order.
5. Read the margin, markup, cost, selling price and profit, then check the table of prices for common margins.

What it does and when to use it

Pricing goes wrong when markup and margin get mixed up. A supplier might quote a markup while your accountant talks about margin, and the two numbers are never the same. This calculator works out all of them from any two you know, so you can price with confidence.

Use it to:

• Set a selling price that hits a target margin.
• Check the real margin on a product you already sell.
• Work back to the cost from a price and a known markup.
• See the profit on a whole order, not just one unit.
• Compare prices for several margins at once, using the table.

The US Internal Revenue Service suggests that retailers and wholesalers check their gross profit percentage against their markup policy, since a large gap can point to errors in sales, purchases or inventory. HMRC defines gross profit rate the same way, as gross profit divided by turnover.

If a sale or coupon is coming, check its effect with the Discount Calculator. To see how many units you must sell to cover fixed costs, use the Break-Even Calculator. For the return on a whole project, try the ROI Calculator.

How it works

With cost C and selling price P:

• Profit = P − C
• Margin = (P − C) ÷ P × 100
• Markup = (P − C) ÷ C × 100
• Price from a target margin = C ÷ (1 − margin ÷ 100)
• Price from a markup = C × (1 + markup ÷ 100)
• Cost from a price and markup = P ÷ (1 + markup ÷ 100)

The common-margins table applies the margin formula for margins from 10% to 70%. It shows the price, profit and matching markup for your cost. Everything runs in your browser.

Worked examples

Cost and price known. Buy at $60, sell at $100. Profit is $40, the margin is 40% and the markup is 66.67%.

Pricing for a 20% margin. On an $80 cost, the selling price is $100.00, a 25% markup. The table shows that a 30% margin would need $114.29.

Working back to cost. A $50 price with a 25% markup means a cost of $40.00 and a 20% margin.

A whole order. A ₹400 item with a 50% markup sells for ₹600, a 33.33% margin. For 120 units, revenue is ₹72,000 and profit is ₹24,000.00. This matches the IRS example in Publication 334, where marking up goods to earn a 33⅓% gross profit on sales means sales of $300,000 on a $200,000 cost of goods.

Limits and tips

• The tool shows gross figures. Tax, shipping, payment fees and overheads are not included unless you add them to the cost.
• If the price is below the cost, the tool warns that each sale loses money.
• Decide which measure your business reports, margin or markup, and use it consistently in price lists and reports.