Free tool
Markup Calculator
Enter a cost and a markup to get the price, the profit, and the margin — or flip it around and work the markup out from a price you already charge. Markup and margin side by side, so you never confuse the two. Free, runs in your browser, no account.
Cost + markup → price
- Selling price
- —
- Profit per unit
- —
- Margin
- —
Cost + price → markup
- Markup
- —
- Margin
- —
- Profit per unit
- —
Your markup only holds if you know what competitors charge.
Outmano tracks competitors' prices and packaging and alerts you the moment they change — so you can set markup from what the market actually bears, not last year's guess.
Markup vs. margin: the difference that trips people up
Markup and margin both describe the profit in a sale, but they measure it against different numbers, and confusing them is how businesses quietly underprice.
- Markup is profit as a percentage of cost: markup % = (price − cost) ÷ cost × 100.
- Margin is profit as a percentage of price: margin % = (price − cost) ÷ price × 100.
Because the selling price is always bigger than the cost, the margin percentage is always smaller than the markup percentage. A 50% markup sounds like a 50% margin — it's actually 33.3%. Price from the markup number while reporting the margin number and you'll miss your targets every time. To convert: margin = markup ÷ (100 + markup) × 100.
Setting price is only half the job. See how your number compares with the SaaS pricing directory and tear down any competitor's page with the Pricing Page Analyzer.
Markup-to-margin conversion table
| Markup | Margin | $40 cost → price |
|---|---|---|
| 5% | 4.8% | $42.00 |
| 10% | 9.1% | $44.00 |
| 15% | 13.0% | $46.00 |
| 20% | 16.7% | $48.00 |
| 25% | 20.0% | $50.00 |
| 30% | 23.1% | $52.00 |
| 40% | 28.6% | $56.00 |
| 50% | 33.3% | $60.00 |
| 60% | 37.5% | $64.00 |
| 75% | 42.9% | $70.00 |
| 100% | 50.0% | $80.00 |
| 150% | 60.0% | $100.00 |
| 200% | 66.7% | $120.00 |
How to calculate markup
- Start from your true unit cost. Include everything that scales with a unit — materials, fulfillment, payment fees — not just the sticker cost, or every downstream percentage is wrong.
- Apply the markup. Multiply cost by (1 + markup ÷ 100). A $40 cost at 50% markup is $40 × 1.5 = $60.
- Read the margin, not just the markup. That $60 sale is a 33.3% margin, not 50%. Report and compare on margin so the numbers mean the same thing across products.
- Pressure-test it against the market. A healthy margin on paper still loses if a competitor delivers the same thing for less. Price is relative — check theirs before you commit to yours.
Markup calculator FAQ
- How do you calculate markup?
- Markup is the amount you add to a product's cost, expressed as a percentage of that cost. The formula is markup % = (price − cost) ÷ cost × 100. To go the other way, price = cost × (1 + markup ÷ 100). So a $40 item with a 50% markup sells for $60.
- What is the difference between markup and margin?
- Both measure profit on a sale, but against different bases. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. Because price is always larger than cost, the margin percentage is always smaller than the markup percentage — a 50% markup is only a 33.3% margin.
- How do I convert markup to margin?
- Use margin = markup ÷ (100 + markup) × 100. A 25% markup is a 20% margin; a 100% markup is a 50% margin. The conversion table on this page lists the common values, and the calculator shows both at once so you never mix them up.
- Is this markup calculator free? Do I need an account?
- Yes, and no account. The calculator runs entirely in your browser. We only ask for an email if you want to download the markup-to-margin reference as a PDF.