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Markup Calculator

Get a selling price from cost and markup, plus the margin it gives you, price with tax and totals for a quantity.

Result

Profit

$30.00

Gross margin

23.08%

Price incl. tax

$130.00

Total revenue

$130.00

Total profit

$30.00

Selling price

$130.00

Embed this calculator on your site

Copy this code and paste it into your page's HTML. The calculator is free to use and resizes itself to fit.

How it's calculated

Selling price = cost × (1 + markup). Markup is profit as a share of cost; margin is profit as a share of price — so a 50% markup is only a 33.3% margin.

This markup calculator turns a cost and a markup percentage into a selling price. It also shows the profit, the margin that markup produces, the price with tax and the totals for a quantity. Use it to price products, parts or resold services.

The formula

selling price = cost x (1 + markup %)
profit        = selling price - cost
margin %      = profit / selling price x 100
price + tax   = selling price x (1 + tax rate)
total revenue = selling price x quantity
total profit  = profit x quantity

Worked example

Inputs: cost $100, markup 30%, quantity 10, tax 8%.

  • Selling price: $130.00
  • Profit per unit: $30.00
  • Margin: 23.08%
  • Price including tax: $140.40
  • Total revenue: $1,300.00
  • Total profit: $300.00

How to read the result

Markup tells you how far you raised the price above cost. Margin tells you how much of each sale you keep as profit. Mixing them up is a common pricing error.

  • A 100 percent markup is a 50 percent margin, not 100.
  • If a supplier or a report quotes margin, convert it before you apply it as markup.
  • Gross profit is not net profit. Rent, tools and time still come out of it.
  • Round the final price to a number that fits your market, such as $129 or $130.

Use the margin calculator when you start from a target margin and need the price.

Related tools

Frequently asked questions

How do I calculate a selling price from markup?
Multiply the cost by one plus the markup rate. A cost of $100 with a 30 percent markup gives a selling price of $130.
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. The same sale has a smaller margin than markup. A 30 percent markup gives about a 23.1 percent margin.
How do I convert markup to margin?
Divide the markup by one plus the markup. For 50 percent markup, 0.5 divided by 1.5 is 33.3 percent margin. To go the other way, divide margin by one minus margin.
What is a good markup percentage?
It depends on your industry, costs and competition. Retail, services and wholesale use very different figures. Compare your margin with your overheads, not with one universal number.
Can I use this for services?
Yes. Enter your cost of delivering the service as the cost. The result shows the price that gives your chosen markup.