Free Markup Calculator (+ Guide)

What is a markup calculator?

A markup calculator works out how much you add on top of your cost to set a price, as a percent.

Shops and makers think in markup ("I add 50%"). Accountants and investors think in margin. This calculator gives you both from any one of them.

Markup vs margin

Both start from the same profit: price − cost.

Because the price is bigger than the cost, the margin is always the smaller number. That's where pricing mistakes come from: someone aiming for a 50% margin adds 50% to the cost and gets only 33%.

To turn one into the other: markup = margin ÷ (1 − margin), and margin = markup ÷ (1 + markup).

A worked example

Here's the example the calculator loads: a product that costs $50 and sells for $80.

The profit is $80 − $50 = $30. The markup is $30 ÷ $50 = 60%, and the margin is $30 ÷ $80 = 37.5%.

The same $50 cost at common markups:

Mistakes to avoid

These are the pricing slips that cost money.

• Adding the margin you want to your cost as a markup
• Leaving costs out: shipping, fees and returns all belong in the cost
• Comparing your markup to another business's margin
• Pricing from cost alone, without checking what buyers pay elsewhere

Who is the markup calculator for?

It's for anyone who sells something, and these tools help around it.

• Discount calculator – for what a sale does to your price
• Percentage calculator – for any percent question
• Currency converter – for costs in another currency
• Card fees abroad calculator – for what cards add to a payment

Know both numbers, and price with your eyes open.