Markup calculator
Find a selling price from cost and markup or a target margin, and see how markup and margin differ.
- ๐บ๐ธ US federal & state rules
Selling price
$30.00
$10.00 profit per item
- Markup
- 50%
- Margin
- 33.33%
- Profit per item
- $10.00
- Cost
- $20.00
This is an example. Enter your numbers above and press the button to see your own result.
Markup vs margin
| 10% markup | 9.09% margin, price $22.00 |
|---|---|
| 20% markup | 16.67% margin, price $24.00 |
| 25% markup | 20% margin, price $25.00 |
| 30% markup | 23.08% margin, price $26.00 |
| 50% markup | 33.33% margin, price $30.00 |
| 75% markup | 42.86% margin, price $35.00 |
| 100% markup | 50% margin, price $40.00 |
| 200% markup | 66.67% margin, price $60.00 |
- Markup is profit divided by cost. Margin is profit divided by the selling price. The same item always has a higher markup than margin.
- Cost here is what you pay per item. Add shipping, packaging and platform fees to it if you want them covered by the price.
Show the math
| Price | $20.00 ร (1 + 50%) = $30.00 |
|---|---|
| Margin | $10.00 รท $30.00 = 33.33% |
What to do next
How it works
Markup pricing multiplies the cost by one plus the markup. Margin pricing divides the cost by one minus the margin. If you already have a price, the calculator works backward to both percentages.
The table shows common markups, the margin each one gives and the price on your cost, so you can see the gap between the two numbers.
Things to keep in mind
Many retailers talk in markup while accountants and investors talk in margin. Saying 50% without saying which can mean a price of $30 or $40 on a $20 item.
If you sell on a marketplace, add the platform fee, payment fee and shipping to your cost first, or check them with a fee calculator.
Frequently asked questions
How do I calculate markup?
Subtract cost from price and divide by cost. An item that costs $20 and sells for $30 has a $10 profit, which is a 50% markup.
What is the difference between markup and margin?
Markup compares profit to cost, margin compares profit to price. A 50% markup is a 33.33% margin, and a 100% markup is a 50% margin.
How do I price an item for a 40% margin?
Divide the cost by 1 minus 0.40. A $30 cost needs a $50 price, which is a 66.67% markup.
Can margin be over 100%?
No. Margin is a share of the price, so it tops out below 100%. Markup has no ceiling: selling a $5 item for $20 is a 300% markup.