Markup Calculator
NewCalculate the selling price and profit amount from a cost and markup percentage, where markup is expressed as a percentage of cost (distinct from profit margin, a percentage of selling price).
Markup is always a percentage of cost (selling price = cost × (1 + markup%)) — this is different from profit margin, which is a percentage of the selling price. A 40% markup and a 40% margin produce different selling prices for the same cost, which is why it's important to know which one a quoted percentage refers to.
Frequently Asked Questions
What's the difference between markup and profit margin?
Markup is profit as a percentage of cost; profit margin is profit as a percentage of selling price. They're calculated from the same profit dollar amount but divided by different numbers, so the same sale always has a higher markup percentage than margin percentage.
Why does a 40% markup not equal a 40% margin?
Because the denominators differ. A $50 cost item marked up 40% sells for $70 (a $20 profit on a $50 cost = 40% markup), but that same $20 profit on the $70 selling price is only 28.57% — the margin percentage.
Is there a formula to convert markup to margin?
Yes: margin% = markup% / (1 + markup%) × 100. For a 40% markup, that's 40/140 × 100 = 28.57% margin — matching the example above exactly.
Which one should I use for pricing decisions?
Retailers commonly think in markup (percentage added to cost) when pricing items, while margin is more often used in financial reporting and profitability analysis — both describe the same profit, so use whichever convention your business/industry expects.
Related Tools
Math Expression Evaluator
NewEvaluate mathematical expressions safely — supports arithmetic, trig, logs, sqrt, and more.
Prime Number Tools
NewCheck if a number is prime, find primes up to N, prime factorization, and nearest prime finder.
Percentage Calculator
NewCalculate percentages, percent change, and percent increase/decrease instantly.