Markup Calculator
Determine the right selling price for your products using markup percentage. Enter your cost and desired markup to see the selling price, profit per unit, and equivalent profit margin.
Markup is the percentage added to the cost of a product to determine its selling price. The formula is simple: Selling Price = Cost x (1 + Markup%). A $45 product with a 60% markup sells for $72.
It is important to distinguish markup from margin. Markup is calculated on cost, while margin is calculated on the selling price. A 60% markup equals approximately a 37.5% margin. Businesses often confuse these metrics, which can lead to pricing errors.
The conversion formulas are: Margin = Markup / (1 + Markup) and Markup = Margin / (1 - Margin). For example, a 50% markup equals a 33.3% margin, and a 50% margin equals a 100% markup. Understanding both metrics helps you communicate effectively with different stakeholders who may use either convention.