Pricing & profit

Markup Calculator

Set a selling price from cost and markup, analyze an existing price, or convert between markup and margin.

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What do you know?

Selling price

$120.00

Profit
$40.00
Profit margin
33.33%

A 50% markup on $80 adds $40 to the selling price.

Selling price = cost × (1 + markup ÷ 100)

How markup is calculated

Markup measures profit against cost: markup = (selling price − cost) ÷ cost × 100. To price from a markup, multiply cost by one plus the markup rate.

Profit margin instead measures profit against selling price. Because the denominators differ, markup is normally higher than the corresponding margin.

Worked example

An $80 cost with a 50% markup produces a $120 selling price and $40 profit. That same $40 profit is 33.33% of the $120 price, so the margin is 33.33%.

Converting margin and markup

The conversion is included here because it serves the same pricing decision. Use margin = markup ÷ (100 + markup) × 100, or markup = margin ÷ (100 − margin) × 100.

Assumptions and rounding

  • Cost and price use the same currency and include the same expense categories.
  • Negative profit and negative rates are supported where mathematically meaningful.
  • Rates with a zero denominator are reported as undefined rather than zero.
  • Money displays to two decimal places while intermediate calculations keep more precision.

Last reviewed: September 11, 2026 · See an issue? Request a correction.