Markup Calculator
Work out your selling price from a cost and markup percentage, or find the markup and margin from a cost and selling price.
How to Use the Markup Calculator
Our Markup Calculator helps you price products correctly by working out the selling price from a cost and a target markup, or by working backwards from a cost and selling price to reveal the true markup and margin percentages. It’s built for retailers, freelancers and small business owners who need to price with confidence and understand exactly how much profit each sale generates.
Markup vs Margin: What’s the Difference?
Markup and margin are both ways of expressing profit as a percentage, but they use different bases. Markup is profit divided by the cost price. Margin is profit divided by the selling price. Because the selling price is always higher than the cost price when there’s a profit, margin is always a smaller percentage than markup for the same pound amount of profit. Confusing the two is one of the most common pricing mistakes in business.
| Cost Price | Selling Price | Profit | Markup (% of cost) | Margin (% of price) |
|---|---|---|---|---|
| £40 | £50 | £10 | 25% | 20% |
| £40 | £60 | £20 | 50% | 33.3% |
| £40 | £80 | £40 | 100% | 50% |
| £40 | £120 | £80 | 200% | 66.7% |
How to Use the Markup Calculator
- Cost + Markup → Price: Enter your cost price and your desired markup percentage, or pick a quick preset.
- Optionally enter a quantity to see total revenue and total profit across multiple items.
- Results update automatically, showing the selling price, profit, and the equivalent margin percentage.
- Cost + Price → Markup & Margin: Switch tabs and enter your cost price and the price you’re actually selling at (or plan to sell at).
- The calculator shows both the markup and the margin, so you can see the real profitability of the sale from either angle.
How to Calculate Markup
To calculate markup, subtract the cost price from the selling price to find the profit, then divide the profit by the cost price and multiply by 100. For example, an item costing £40 sold for £60 has a profit of £20, which is a markup of 50% (£20 ÷ £40 × 100). To go the other way, multiply the cost by the markup percentage to get the profit, then add that to the cost to find the selling price.
Why Markup Is Always Higher Than Margin
For any profitable sale, markup will always be a higher number than margin, because it’s calculated against the smaller base figure (the cost) rather than the larger one (the selling price). A 100% markup, for instance, corresponds to only a 50% margin, not 100%. This distinction matters when setting prices: if you aim for a 50% margin but mistakenly apply a 50% markup instead, you’ll actually be pricing below your target margin. Business owners who want a specific margin should work out the markup needed to hit it, rather than assuming the two percentages are interchangeable.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit expressed as a percentage of the cost price, while margin is profit expressed as a percentage of the selling price. Because the selling price is always higher than the cost when there’s a profit, margin is always a lower percentage than markup for the same numbers. For example, a 50% markup on a £100 cost gives a £150 selling price, which is a 33.3% margin, not 50%.
How do you calculate markup percentage?
Subtract the cost price from the selling price to find the profit, then divide the profit by the cost price and multiply by 100. For example, a £60 item sold for £90 has a profit of £30, which is a markup of 50% (£30 ÷ £60 × 100).
How do you calculate selling price from cost and markup?
Multiply the cost price by the markup percentage divided by 100 to find the profit, then add that to the cost price. For example, a £40 cost with a 25% markup adds £10 profit, giving a selling price of £50.
Can markup be more than 100%?
Yes. Unlike margin, which can never reach or exceed 100% while making a profit, markup has no upper limit. A markup of 200% means the profit is twice the cost price, for example a £20 cost sold for £60.
What does a negative markup or margin mean?
A negative markup or margin means the item is being sold for less than it cost, resulting in a loss rather than a profit.
Why is my margin percentage lower than my markup percentage?
Margin is calculated as a percentage of the selling price, while markup is calculated as a percentage of the cost price. Since the selling price is larger than the cost price whenever there’s a profit, dividing by the larger number always produces a smaller percentage, so margin will always be lower than markup for the same profit.