Turn a cost into a selling price with a target markup, or work out the markup on a price you already charge. Includes the markup-to-margin conversion table so the two measures do not get mixed up.
| Input | Result |
|---|---|
| $60 cost, $90 price | 50.00% markup, $30.00 added |
| $100 cost, $150 price | 50.00% markup, $50.00 added |
| $45 cost, 75% target markup | $78.75 selling price |
| Quantity | Formula |
|---|---|
| Markup | (Price − cost) ÷ cost × 100 |
| Selling price | Cost × (1 + target markup) |
| Amount added | Price − cost |
A 50% markup on a $60 cost gives a $90 price: you added half of what you paid. Notice that the same sale is a 33.3% margin, because the $30 profit is measured against the $90 price rather than the $60 cost.
| Markup | Equals this margin |
|---|---|
| 15.0% | 13.0% |
| 20.0% | 16.7% |
| 25.0% | 20.0% |
| 33.3% | 25.0% |
| 50.0% | 33.3% |
| 75.0% | 42.9% |
| 100.0% | 50.0% |
| 150.0% | 60.0% |
The conversion is margin = markup ÷ (1 + markup), using the decimal form of each percentage. Going the other way, markup = margin ÷ (1 − margin).
These are the standard markup and gross-margin definitions. Checked 2026-10-15 against four independent references that state them identically: the Massachusetts state government small-business pricing guide, the Wikipedia article on gross margin, and the Xero glossary pages for the US and Australia. Markup is undefined at a cost of zero, so the calculator asks for a cost above zero instead of printing a misleading 0%.
Scope. "Cost" means cost of goods sold, what you paid for the item — and excludes rent, wages, advertising and other overheads, so this is a gross figure, not a net profit figure. This is an arithmetic tool, not accounting or tax advice.
Subtract your cost from the selling price, then divide by the cost and multiply by 100. A $60 cost sold at $90 gives $30 of profit, and $30 ÷ $60 × 100 = 50.00%.
You need a 100% markup. Converting from margin to markup uses markup = margin ÷ (1 − margin), so 0.50 ÷ 0.50 = 1.00, a doubling of cost. The conversion table above shows the same relationship for other values.
It varies widely by industry, and this page deliberately does not quote a benchmark figure, because published averages differ between sources and would be misleading to hard-code. Use your own overheads and target profit to set the number, then check what margin it produces.
Markup is measured against cost, so a zero cost means dividing by zero. Rather than print a misleading 0%, the calculator asks for a cost above zero. At a zero cost the margin would be 100% regardless of price.
Yes, as long as you can state a cost. For services the cost is usually the labour hours and any materials, and the same formulas apply: the fee you charge is the price, your delivery cost is the cost.