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Calculate markup, margin, cost price, and selling price. Convert between markup and margin percentages with formulas and quick reference table.
Markup is profit expressed as a percentage of cost price, while margin is profit expressed as a percentage of selling price. A 50% markup on a $100 cost gives a $150 price — but the margin on that sale is only 33.33%.
Calculate selling price from cost and markup percentage.
Formula
Markup% = (Price − Cost) ÷ Cost × 100Cost = the purchase or production cost of the item
Price = the selling price to the customer
Margin% = (Price − Cost) ÷ Price × 100 — profit as % of revenue
Worked Example
Item costs $40 to produce, sold at $60
Did you know? Markup and margin sound similar but differ significantly — a 50% markup only results in a 33.3% margin. Retailers often think in markup while accountants think in margin. Confusing the two causes systematic pricing errors that erode profitability.
Sources
Profit as percentage of cost.
Profit as percentage of selling price.
Convert between markup and margin.
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