Business
Invoicing, margin & GST calculators
Markup Calculator
Convert between markup and margin; price from cost + markup or target margin. Accurate, instant and free — for United States.
What these mean:
A cost of $80.00 sold at $100.00 is a 25.0% markup but only a 20.0% margin — markup is measured on cost, margin on price.
Markup (on cost)
25.00%
Margin (on price)
20.00%
Profit
$20.00
Markup is not the same as margin
Track gross, operating and net margin with the Profit Margin Calculator, or work out a sale price with the Discount Calculator.
Markup vs margin
Markup and margin describe the same profit from two different angles. Markup measures profit against your cost; margin measures it against your selling price. Since the price is always larger than the cost, the margin percentage is always the smaller of the two — mixing them up quietly under-prices your product.
Markup
profit ÷ cost
markup% = (price − cost) ÷ cost × 100
$80 cost → $100 price = 25% markup.
Margin
profit ÷ price
margin% = (price − cost) ÷ price × 100
Same $20 profit → 20% margin, not 25%.
- 1Price from a target margin (the case people get wrong): For a 40% margin on an $80 cost, divide — don't multiply: price = 80 ÷ (1 − 0.40) = $133.33. Applying a 40% markup instead would price it at only $112.
- 2Take it further: Layer several margin lines into a full P&L view with the Profit Margin Calculator, or model a promotion with the Discount Calculator.
Markup → margin reference
Use margin = markup ÷ (100 + markup)to convert between the two. A doubling of price (100% markup, "keystone" pricing) is a 50% margin; a margin can never reach 100%.
| Markup | Equivalent margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33.33% | 25.0% |
| 50% | 33.3% |
| 66.67% | 40.0% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
Pricing from a target margin
Frequently asked questions
Markup is profit measured as a percentage of your cost; margin is the same profit measured as a percentage of the selling price. On an item that costs $80 and sells for $100, the $20 profit is a 25% markup ($20 ÷ $80) but only a 20% margin ($20 ÷ $100). Because the price is always larger than the cost, the margin percentage is always smaller than the markup.
Markup % = (selling price − cost) ÷ cost × 100. For a $100 price on an $80 cost, that is (100 − 80) ÷ 80 = 25%. Rearranged, the selling price = cost × (1 + markup ÷ 100), so an $80 cost at 25% markup sells for $100.
Margin % = (selling price − cost) ÷ selling price × 100. For a $100 price on an $80 cost, that is (100 − 80) ÷ 100 = 20%. To price from a target margin instead, use selling price = cost ÷ (1 − margin ÷ 100): an $80 cost at a 40% target margin needs a price of 80 ÷ 0.60 = $133.33.
Margin = markup ÷ (100 + markup) × 100, and markup = margin ÷ (100 − margin) × 100. So a 50% markup is a 33.3% margin, and a 100% markup (keystone pricing) is a 50% margin. A margin can never reach 100% — that would require an infinite markup, since profit can never exceed the selling price.
If you want a 40% margin but mistakenly apply a 40% markup, you sell an $80 item for $112 instead of the $133.33 the margin requires — leaving roughly 11 points of margin on the table on every sale. Retail, wholesale and SaaS pricing are frequently quoted in different bases, so always confirm whether a figure is a markup or a margin before you price.
Multiply the cost by (1 + markup ÷ 100). To add a 30% markup to a $50 cost, the selling price is 50 × 1.30 = $65 (a $15 profit). To add 50% markup, 50 × 1.50 = $75; to add 100% markup (keystone pricing), 50 × 2 = $100. This markup calculator does the arithmetic for any cost and markup percentage, and also shows the equivalent margin.
Yes — it is completely free with no sign-up, and every calculation runs entirely in your browser. Nothing you enter is sent to a server or stored.
Method, assumptions & references
Methodology: markup% = (price − cost) ÷ cost × 100; margin% = (price − cost) ÷ price × 100. Price from markup = cost × (1 + markup/100); price from margin = cost ÷ (1 − margin/100). Conversions: margin = markup ÷ (100 + markup), markup = margin ÷ (100 − margin). All calculations run client-side; nothing is stored.
Cross-links
How we calculate this
Reviewed by Reckonist Editorial · Last reviewed 4 July 2026. Figures follow the methods and sources set out in our editorial standards.
Markup and margin formulas are standard accounting identities. Figures are for pricing guidance only and do not account for taxes, shipping, payment fees or returns. This is not financial advice.
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