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MerchantFindUSA

Markup Calculator

Use this online markup calculator to set a selling price from your cost and a markup percentage, or to see the markup and profit margin on a price you already charge. Markup and margin are not the same thing, and mixing them up is a common pricing mistake, so both are shown.

Markup and margin side by side

MarkupMargin
10%9.1%
20%16.7%
25%20.0%
30%23.1%
40%28.6%
50%33.3%
75%42.9%
100%50.0%

Runs in your browser — nothing is uploaded.

Results are estimates based on the rates shown. Your actual fees depend on your agreement with the provider.

How to use it

  1. Pick a mode: price from cost and markup, or markup from cost and price.
  2. Enter your cost per item and either the markup percentage or the selling price.
  3. Read the selling price, profit per item, markup and margin.

The markup formulas

Markup is profit as a percentage of cost: markup = (price − cost) ÷ cost × 100. Price from markup: price = cost × (1 + markup ÷ 100).

Worked example: an item costs $40.00. With a 50% markup the price is $60.00, a profit of $20.00. The margin on that price is 33.3%, lower than the markup because margin divides by the price, not the cost.

A 50% markup is not a 50% margin. To convert, margin = markup ÷ (100 + markup) × 100, and markup = margin ÷ (100 − margin) × 100.

Frequently asked questions

What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by the selling price. For the same sale, margin is always lower than markup. A 50% markup is a 33.3% margin.

How do I calculate a selling price from cost and markup?

Multiply the cost by 1 plus the markup as a decimal. At a 40% markup, a $50 cost becomes $50 × 1.40 = $70.

What markup should I use?

There is no single right number. It depends on your costs, competitors, volume and what customers will pay. Make sure the markup covers your overhead and card processing fees as well as the item cost.

Does a markup calculator include sales tax or card fees?

No. It works on your cost and price only. Add sales tax separately, and use the surcharge or processing fee calculators to see what card payments cost you.

Can markup be over 100%?

Yes. A markup of 100% doubles the cost. Margin, by contrast, can never reach 100%.

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