— Everyday Math
Markup Percentage Calculator
Markup is profit measured against cost — the amount you add to what something costs you to set its selling price. Enter the cost and either the price or the markup, and the calculator solves for the rest: the markup percentage, the profit, and the equivalent profit margin.
Markup
25%
- Profit per unit
- $20
- Equivalent margin
- 20%
— How it works
Markup % = (selling price − cost) ÷ cost × 100. Selling price = cost × (1 + markup% ÷ 100). The equivalent margin = markup ÷ (1 + markup) — the same profit measured against price instead of cost.
Markup is profit over cost
Markup answers a seller’s question: how much do I add to what something cost me to arrive at its price? It is the profit expressed as a percentage of the cost — buy for 80, sell for 100, and the 20 of profit is a 25% markup, because 20 is a quarter of the 80 cost. Rearranged, it is a pricing rule: to apply a 25% markup, multiply the cost by 1.25. The defining feature is the denominator: markup always divides profit by cost, which is what separates it from margin.
Worked example — buy for $80, sell for $100: Profit = $100 − $80 = $20. Markup = $20 ÷ $80 = 25%, but the margin = $20 ÷ $100 = 20%.
Markup vs margin — the cross-reference that trips people up
Markup and margin describe the same profit but divide it by different things: markup by cost, margin by selling price. Because the price is always larger than the cost, the margin percentage is always smaller than the markup — a 25% markup is a 20% margin, a 50% markup is a 33.3% margin, and a 100% markup is only a 50% margin. Confusing the two is one of the most expensive mistakes in retail pricing: aim for a “40% margin” but apply a 40% markup and you have quietly underpriced. This calculator shows both for every calculation, converting with margin = markup ÷ (1 + markup).
Solving in any direction
The same three quantities — cost, selling price and markup — rearrange to answer whichever you are missing. Know the cost and price and you want the markup percentage; know the cost and the markup you want to apply and you need the selling price; know the price and the markup and you can back out the underlying cost. Pick the matching mode and fill the two fields you know. The cost cannot be zero in markup mode (profit ÷ 0 is undefined), and a markup of −100% is rejected when solving for cost, since it would imply an infinite cost.
— Reader questions
How do I calculate markup percentage?
Subtract the cost from the selling price to get the profit, divide by the cost, and multiply by 100. Buying at $80 and selling at $100 gives ($100 − $80) ÷ $80 × 100 = 25% markup. Enter the cost and price in markup mode and the calculator does it instantly.
What is the difference between markup and margin?
Both measure the same profit, but markup divides it by the cost while margin divides it by the selling price. Since the price exceeds the cost, the margin is always the smaller number — a 25% markup equals a 20% margin. This calculator shows the equivalent margin for every result.
How do I set a price from a markup?
Multiply the cost by one plus the markup as a decimal. A 25% markup on a $80 cost is $80 × 1.25 = $100. Switch to “Selling price” mode, enter the cost and markup, and the calculator returns the price and the profit.
How do I convert a markup to a margin?
Divide the markup by one plus the markup: margin = markup ÷ (1 + markup). A 50% markup is 0.5 ÷ 1.5 = 33.3% margin. To go the other way, markup = margin ÷ (1 − margin).
Why can’t the cost be zero?
Markup is profit divided by cost, and dividing by zero is undefined — an item that costs nothing has no meaningful markup percentage. The calculator prompts you to enter a cost above zero in markup mode.