Markup Calculator

See the difference between markup and margin before you set a selling price.

Markup vs. margin

Markup measures profit as a percentage of cost. Profit margin measures profit as a percentage of selling price. They are not interchangeable. If an item costs $40 and sells for $60, the $20 profit equals a 50% markup but a 33.33% profit margin.

Markup formula

Markup % = (Selling price − Cost) ÷ Cost × 100. Profit margin uses the same profit amount divided by selling price instead.

Use markup with break-even and ROI

Markup tells you how aggressively you priced above cost, but it does not tell you whether the business covers fixed expenses or produces an acceptable return. Use the Break-Even Calculator to estimate required volume, the Profit Margin Calculator for margin analysis, and the ROI Calculator to evaluate return on invested money.