Free Markup Calculator
Calculate markup and margin
Find the right selling price for your products and services. Free, no account needed.
Calculation Results
Markup vs Margin — What's the Difference?
Markup: Percentage added to cost to determine price.
Markup = ((Price - Cost) / Cost) × 100
Profit Margin: Percentage of sale price that is profit.
Margin = ((Price - Cost) / Price) × 100
Example: If you buy for $50 and sell for $100:
- Markup = 100% (you add 100% to cost)
- Margin = 50% ($50 profit from $100 sale)
Common Industry Markups
Factors for Determining Your Markup
- Competition: What prices does the market support?
- Positioning: Premium vs budget brand
- Fixed costs: Rent, salaries, insurance
- Turnover rate: How quickly do you sell?
- Perceived value: How much are customers willing to pay?
- Seasonality: Are there demand peaks?
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Calculate the right markup percentage, profit margin, and selling price for your products or services in seconds. Our free markup calculator takes the guesswork out of pricing — enter your cost and desired markup or margin, and instantly see the selling price, gross profit, and margin percentage. Whether you're a retailer setting prices, a contractor quoting jobs, or a freelancer packaging services, getting your markup right is the difference between profitability and working for free. No signup, no spreadsheet formulas, no pricing consultants. This tool handles the math so you can focus on making confident pricing decisions that actually grow your bottom line.
How to Calculate Markup and Margin
- 1
Enter your cost
Input the cost to produce, purchase, or deliver your product or service. Include materials, labor, and overhead.
- 2
Set your desired markup or margin
Enter either a markup percentage (based on cost) or a target margin percentage (based on selling price). The calculator converts between them.
- 3
Review your pricing
See the calculated selling price, dollar profit per unit, markup percentage, and margin percentage — all at once.
- 4
Adjust and compare
Try different markup levels to see how they affect your margin and profit. Find the sweet spot between competitive pricing and profitability.
Why Markup Matters for Your Business
Profit clarity
Many businesses set prices by gut feel and lose money without knowing it. A markup calculator shows you the exact profit on every sale so you can price with confidence.
Markup vs. margin — no more confusion
Markup and margin are related but not the same. A 50% markup equals a 33% margin. This tool shows both so you always know your real profitability.
Competitive pricing
Price too high and you lose customers. Too low and you lose money. Testing different markup levels helps you find the price point that wins business and sustains your margins.
Free and instant
No formulas to remember, no spreadsheet to build. Enter your numbers and get answers immediately — no signup, no cost.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to your cost to get the selling price. Margin is the percentage of the selling price that is profit. Example: a product that costs $60 and sells for $100 has a 66.7% markup but a 40% margin. They're different ways of expressing the same pricing relationship.
What is a good markup percentage?
It varies by industry. Retail clothing typically uses 50-100% markup. Restaurants markup food 200-300%. Professional services range from 50-150%. The right markup covers your overhead, pays you fairly, and keeps you competitive in your market.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). For example, a 50% markup (0.50): 0.50 ÷ 1.50 = 0.333, or 33.3% margin. Going the other way: Markup = Margin ÷ (1 - Margin). This calculator handles both conversions automatically.
Should I use markup or margin for pricing?
Most businesses use markup to set prices (it's simpler — just add a percentage to your cost) and margin to evaluate profitability (it tells you what percentage of revenue is profit). Use whichever feels more intuitive for pricing, but always check your margin to make sure you're actually profitable.
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