Pricing
Markup, from cost to price.
Pick what you want to find, enter the other two numbers and get the selling price, markup, profit and gross margin together.
Markup % = (price - cost) / cost x 100. Price = cost x (1 + markup %). A $40 cost with a 50% markup sells for $60, which is $20 profit and a 33.33% margin.
Your numbers
Result
Worked example
A product costs you $40 and you add a 50% markup. The markup is $40 x 0.50 = $20, so the selling price is $60.00. Your profit is $20.00 per unit. Measured against the price instead of the cost, that same profit is 33.33%, which is the gross margin. Going the other way, a cost of $40 and a price of $60 gives (60 - 40) / 40 = 50% markup.
How it works
Markup is profit as a percentage of cost. Margin is profit as a percentage of price. They use the same dollar profit but a different base, so a given markup is always a smaller margin: margin = markup / (100 + markup) x 100. A 100% markup (price is double the cost) is only a 50% margin. Markup works for any price you set above cost; a negative markup means selling below cost, and the tool shows the resulting loss.
Sources and basis (retrieved 2026-10): arithmetic on your inputs using the standard textbook definitions of markup (profit / cost) and gross margin (profit / price). No outside data or third-party figures are used.
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Quick reference table
| Markup | Margin | Price on $100 cost | Profit |
|---|---|---|---|
| 10% | 9.09% | $110.00 | $10.00 |
| 20% | 16.67% | $120.00 | $20.00 |
| 25% | 20.00% | $125.00 | $25.00 |
| 30% | 23.08% | $130.00 | $30.00 |
| 40% | 28.57% | $140.00 | $40.00 |
| 50% | 33.33% | $150.00 | $50.00 |
| 60% | 37.50% | $160.00 | $60.00 |
| 75% | 42.86% | $175.00 | $75.00 |
| 100% | 50.00% | $200.00 | $100.00 |
| 150% | 60.00% | $250.00 | $150.00 |
Common mistakes
- Treating markup and margin as the same number. A 50% markup is a 33.33% margin, and pricing to a 50% margin needs a 100% markup.
- Applying the percentage to the price instead of the cost. Markup is always a percentage of cost.
- Using a margin target as if it were a markup. To hit a margin, convert it first; the selling price from target margin calculator does this.
- Leaving out costs. Freight-in, packaging and payment fees raise cost, so a markup on a partial cost is smaller than it looks.
FAQ
How do you calculate markup?
Subtract the cost from the selling price, divide by the cost and multiply by 100. A $60 price on a $40 cost is (60 - 40) / 40 x 100 = 50% markup.
What is the formula for selling price with markup?
Selling price = cost x (1 + markup % / 100). A $40 cost with a 50% markup is 40 x 1.5 = $60.
Is markup the same as profit margin?
No. Markup divides profit by cost; margin divides profit by price. The same $20 profit on a $40 cost is a 50% markup and a 33.33% margin.
Can markup be over 100%?
Yes. A markup over 100% just means the price is more than double the cost. Margin can never reach 100%, but markup has no upper limit.