Markup calculator
Selling price is cost times one plus the markup. A $40 item with a 50% markup sells for $60, which is a 33.3% margin. To hit a target margin instead, divide the cost by one minus the margin. Enter your cost and percentage to see the price both ways.
Updated November 2026
Calculator
How do I calculate markup?
Markup is profit divided by cost. Margin is profit divided by price. Because they use different bases, the same sale gives two different percentages, and mixing them up is one of the most common pricing mistakes.
| Markup on cost | Margin on price |
|---|---|
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
Should I price by markup or by margin?
Margin is easier to plan with, because it ties straight to your profit and loss. If you need a 40% gross margin to cover overhead, price at cost divided by 0.6. Markup is handy on a shop floor, where staff add a fixed percentage to cost.
What should my costs include?
Everything it takes to deliver that item: the product, freight in, packaging and any direct labor. Leave out overhead like rent, which the margin has to cover. Check your margins over a whole year with the profit margin calculator, and see how many sales you need with the break-even calculator.
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See our bookkeeping serviceWhat is a 50% markup?
A price 50% above cost. A $40 cost with a 50% markup sells for $60.
How do I convert markup to margin?
Divide the markup by one plus the markup. A 50% markup is 0.5 divided by 1.5, or a 33.3% margin.
What markup do I need for a 40% margin?
About 66.7%. Divide 0.4 by 0.6.
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