Markup calculator
Markup is profit divided by cost: (price − cost) ÷ cost × 100. Selling price = cost × (1 + markup). A $80 item marked up 25% sells for $100, which is a 20% margin. To convert, margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin).
Enter your cost and markup percentage to get the selling price, or cost and price to get the markup. The margin is shown next to it, so the two are never mixed up. Working from a target margin? Use the profit margin calculator.
Markup formula
Markup (%) = (price − cost) ÷ cost × 100. Selling price = cost × (1 + markup ÷ 100).
Worked example
| Case | Result |
|---|---|
| Cost $80, markup 25%: selling price | $100.00 |
| Profit | $20.00 |
| Margin | 20.00% |
Markup vs margin conversion table
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 15% | 13.04% |
| 20% | 16.67% |
| 25% | 20.00% |
| 33.33% | 25.00% |
| 50% | 33.33% |
| 100% | 50.00% |
The same profit is always a bigger percentage of cost than of price, so markup is always higher than margin. Quoting a markup when the team thinks in margin is a common way to underprice a deal.
Frequently asked questions
What is the difference between 30% margin and 30% markup?
A 30% markup adds 30% of the cost: an $80 item sells for $104, a 23.08% margin. A 30% margin means profit is 30% of the price: the same $80 item must sell for $114.29, a 42.86% markup.
Is 50% margin 100% markup?
Yes. Selling a $50 item for $100 gives a $50 profit, which is 50% of the price (margin) and 100% of the cost (markup).
What margin is a 33% markup?
About 24.81%. Margin = markup ÷ (1 + markup) = 0.33 ÷ 1.33. A 33⅓% markup is exactly a 25% margin.
How do I calculate a 25% markup?
Multiply the cost by 1.25. An $80 cost with a 25% markup gives a $100 selling price and a $20 profit.
Can markup be over 100%?
Yes. Markup is measured against cost, so a price more than double the cost means a markup above 100%. Margin is measured against price and always stays below 100%.
Related tools: employee cost calculator, payroll calculator. More on sales and running a sales team on the SalesBond blog and the home page.
Official sources
- IRS Publication 334, Tax Guide for Small Business — gross profit = receipts − cost of goods sold.
- NYU Stern (Damodaran) — margins by industry.
Updated on Nov 5, 2026. This calculator is for information only and is not tax, legal or payroll advice. Results come from the formulas above and do not include taxes, overhead or payment fees.
