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Markup Calculator

Start from cost and markup, cost and price, or price and markup. See the profit and how margin differs.

Profit as a percent of cost. Use 50 for 50%.

Price

$60.00

Markup compares profit with cost. Margin compares the same profit with price, so the margin percent is lower.

Markup compared with margin
MeasureMarkupMargin
Divided byCostPrice
This result50.00%33.33%
Cost
$40.00
Price
$60.00
Profit
$20.00

Markup and margin sit in the same pricing plan.

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How it's calculated

Profit is price minus cost. Markup divides that profit by the cost. Margin divides it by the price. A 50% markup on a $40 cost makes a $60 price and a $20 profit. That same $20 is one third of the $60 price, so the margin is 33.33%, not 50%. Price equals cost times 1 plus the markup. Cost equals price divided by 1 plus the markup.

Markup = (price − cost) ÷ cost
Margin = (price − cost) ÷ price

Reviewed by WH2L Digital. Last reviewed October 31, 2026.

Questions

How is a price calculated from cost and markup?

Price equals cost times 1 plus the markup. A 50% markup on a $40 cost is a $60 price. The profit is $20.

Why is the margin percent lower than the markup percent?

Both use the same profit. Markup divides it by the cost. Margin divides it by the larger selling price, so the percent is smaller. A 50% markup is a 33.33% margin.

How do I find the cost from a price and a markup?

Divide the price by 1 plus the markup. A $60 price at a 50% markup came from a $40 cost.

Profit MarginAvailableGross profit, margin, and markup from cost and price, or the price a target margin needs.Break-EvenAvailableUnits and revenue that cover monthly fixed costs, plus units for a target profit.Business LoanAvailableMonthly payment, interest, total cost, and the APR after an origination fee.

Educational estimates only, not financial advice.