What is my markup and margin?
Calculate markup percentages and profit margins. Fill in any two values, such as the cost and the markup or margin.
- Revenue
- $125.00
A cost of $100.00 sells for $125.00: a profit of $25.00, a 25% markup and a 20% margin.
- Profit
- $25.00
- Markup
- 25%
- Margin
- 20%
Revenue: $125.00. A cost of $100.00 sells for $125.00: a profit of $25.00, a 25% markup and a 20% margin.
Revenue by percent at this cost
How to calculate
Computes the selling price, profit, markup and profit margin from any two of the cost, the revenue, the profit and a markup or margin percent.
Example with the default inputs (Cost $100.00, Percent 25%, The percent is Markup (of cost)): A cost of $100.00 sells for $125.00: a profit of $25.00, a 25% markup and a 20% margin.
Formula: P = R − C; markup M = P ÷ C × 100, so R = C × (1 + M ÷ 100); margin G = P ÷ R × 100, so C = R × (1 − G ÷ 100). C is the cost, R the revenue (selling price), P the profit.
- Markup is the profit as a percent of the cost; margin is the profit as a percent of the selling price.
- The cost and the selling price are more than 0. A loss gives a negative profit, markup and margin.
- Limits hold for typed and worked-out values alike: cost and revenue above 0 and at most 1 trillion, profit within ± 1 trillion, percent −99% or more. An answer outside a limit is no answer.
- A margin of 100% or more has no answer, because the cost would be 0 or less.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves away from 0 (420.175 shows as $420.18).
Worked examples
Each example is checked against the calculator on every build.
- The percent is Markup (of cost), Cost $100.00, Percent 25% gives Revenue $125.00, Profit $25.00, Markup 25%, Margin 20%.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- The percent is Margin (of price), Cost $50.00, Percent 20% gives Revenue $62.50, Profit $12.50, Markup 25%.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- The percent is Markup (of cost), Revenue $200.00, Profit $50.00 gives Cost $150.00, Percent 33.333333%, Margin 25%.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- The percent is Markup (of cost), Cost $40.00, Revenue $60.00 gives Profit $20.00, Percent 50%, Margin 33.333333%.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- The percent is Markup (of cost), Revenue $80.00, Percent 60% gives Cost $50.00, Profit $30.00.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- The percent is Margin (of price), Profit $30.00, Percent 25% gives Revenue $120.00, Cost $90.00, Markup 33.333333%.Source: OpenStax, Prealgebra 2e, §6.3 Solve Sales Tax, Commission, and Discount Applications (discount and mark-up). https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
How it works
The calculator links four values: the cost C, the revenue (selling price) R, the profit P, and one percent. A switch says whether the percent is a markup M or a margin G. Fill in any two of the four and it finds the other two, and it always shows both the markup and the margin.
- Profit: P = R − C
- Markup: M = P ÷ C × 100, so R = C × (1 + M ÷ 100) and C = R ÷ (1 + M ÷ 100)
- Margin: G = P ÷ R × 100, so C = R × (1 − G ÷ 100) and R = C ÷ (1 − G ÷ 100)
- From a profit and a percent: C = P ÷ (M ÷ 100) for a markup, R = P ÷ (G ÷ 100) for a margin
- Markup and margin of the same price: G = M ÷ (100 + M) × 100, and M = G ÷ (100 − G) × 100
Assumptions
- Markup is the profit as a percent of the cost. Margin (gross margin) is the profit as a percent of the selling price.
- These limits hold for every value, typed or worked out: the cost and the selling price are more than 0 and at most $1,000,000,000,000 (one trillion); the profit is from −$1,000,000,000,000 to $1,000,000,000,000; the percent has no lower limit, so a large loss such as a −150% margin (cost $250, price $100) has an answer. A markup must be more than −100%, because at −100% or less the selling price would be 0 or less; a margin must be less than 100%. When an answer would fall outside a limit, there is no answer.
- A sale below cost gives a negative profit, markup and margin.
- A margin of 100% or more has no answer, because the cost would be 0 or less.
- A markup and a margin together do not fix a price (a 25% markup is a 20% margin at any price), so the page asks for one percent and a switch.
- A profit of 0 with a percent of 0 has no answer (any cost fits), and neither has a profit and a percent with opposite signs.
- Money (the cost, the revenue and the profit) is computed from exact decimals: each typed number is the decimal you typed, and sums and products are exact. Money is then rounded to the cent (below). Percents (the markup and the margin) are computed in 64-bit floating point, so they are exact to about 15 significant figures, not to the last digit. For example, a $1,200.50 cost with a 35% markup gives a profit of exactly 1,200.50 × 35 ÷ 100 = 420.175.
- Money is shown to the cent, rounded from that exact value with halves away from 0 (−420.175 shows as −$420.18): 420.175 shows as $420.18 and the revenue 1,620.675 as $1,620.68. With a cost in whole cents and a percent of 0 or more, the shown revenue minus the shown cost is always the shown profit. For a loss (a negative percent) that ends in exactly half a cent, the profit rounds away from 0 and the revenue rounds up, so the difference can be one cent off: a $1,200.50 cost at −35% shows a profit of −$420.18 and revenue of $780.33. When the cost itself is worked out (from the revenue or the profit), the cost and the profit can both end in exactly half a cent, and then each shows rounded up, so their sum can show one cent more than the revenue.
- The chart "Revenue by percent at this cost" keeps the cost fixed and draws the revenue for each percent from 0% to 90%: C × (1 + M ÷ 100) for a markup, C ÷ (1 − G ÷ 100) for a margin. For a $100 cost, an 8% markup gives $108.
- A margin of 100% or more gives no answer, and the page says: "A margin must be less than 100%: the cost would be 0 or less."
Worked examples by hand
A $100 cost with a 25% markup. Revenue = 100 × 1.25 = $125. Profit = 125 − 100 = $25. Margin = 25 ÷ 125 × 100 = 20%.
A $50 cost with a 20% margin. Revenue = 50 ÷ (1 − 0.2) = $62.50. Profit = $12.50. Markup = 12.5 ÷ 50 × 100 = 25%.
$200 of revenue with $50 profit. Cost = 200 − 50 = $150. Markup = 50 ÷ 150 × 100 = 33.33%. Margin = 50 ÷ 200 × 100 = 25%.
A $40 cost sold for $60. Profit = $20. Markup = 20 ÷ 40 × 100 = 50%. Margin = 20 ÷ 60 × 100 = 33.33%.
An $80 selling price with a 60% markup. Cost = 80 ÷ 1.6 = $50. Profit = $30.
A $1,200.50 cost with a 35% markup. Profit = 1,200.50 × 35 ÷ 100 = 420.175, shown as $420.18. Revenue = 1,200.50 + 420.175 = 1,620.675, shown as $1,620.68. Check: $1,620.68 − $1,200.50 = $420.18.
A $30 profit at a 25% margin. Revenue = 30 ÷ 0.25 = $120. Cost = 120 − 30 = $90. Markup = 30 ÷ 90 × 100 = 33.33%.
Other questions people ask
What is markup?
Markup is the difference between the cost of a product and its selling price, expressed as a percentage of the cost. It represents the profit added to the cost to determine the selling price. For example, if a product costs $50 and sells for $75, the markup is 50%.
How do I calculate markup percentage?
Markup percentage is calculated using the formula: Markup % = ((Selling Price - Cost) ÷ Cost) × 100. For example, if a product costs $40 and sells for $60, the markup is ((60 - 40) ÷ 40) × 100 = 50%. This means you're adding 50% to the cost to get the selling price.
What's the difference between markup and margin?
Markup is calculated as a percentage of the cost, while margin is calculated as a percentage of the selling price. Markup shows how much you add to the cost, while margin shows what percentage of the selling price is profit. For example, a 50% markup equals a 33.33% margin.
How do I calculate selling price from cost and markup?
To calculate selling price from cost and markup percentage, use the formula: Selling Price = Cost × (1 + Markup % ÷ 100). For example, if cost is $30 and markup is 40%, the selling price is $30 × (1 + 40 ÷ 100) = $30 × 1.4 = $42.
How do I calculate cost from selling price and markup?
To calculate cost from selling price and markup percentage, use the formula: Cost = Selling Price ÷ (1 + Markup % ÷ 100). For example, if selling price is $80 and markup is 60%, the cost is $80 ÷ (1 + 60 ÷ 100) = $80 ÷ 1.6 = $50.
What is a good markup percentage?
Good markup percentages vary a lot by industry and product, so there is no single right number. Compare with your industry standards and competitors, and check that the margin covers your overheads and target profit.
How does markup affect profit?
Higher markup generally means higher profit per unit, but it might reduce sales volume if prices become uncompetitive. Lower markup might increase sales volume but reduce profit per unit. The optimal markup balances profit per unit with sales volume to maximize total profit.
What is the relationship between markup and discount?
Markup and discount are related but opposite concepts. Markup adds to the cost to get selling price, while discount reduces the selling price. For example, a 20% markup followed by a 20% discount doesn't return to the original cost - you'd end up with 96% of the original cost.
How do I calculate markup for services?
For services, markup is calculated on your cost of providing the service (labor, materials, overhead). For example, if it costs you $50 in labor and materials to provide a service, and you charge $75, your markup is ((75 - 50) ÷ 50) × 100 = 50%.
What factors should I consider when setting markup?
Consider your costs (materials, labor, overhead), competition, target profit margins, market demand, product lifecycle, and customer price sensitivity. Also factor in taxes, shipping, and other expenses that affect your total cost structure.
Why can't I get a price from a markup and a margin alone?
Markup and margin are both ratios. A 25% markup always gives a 20% margin, whatever the price. To get a price, give one percent and the cost, the selling price, or the profit. The calculator shows the other percent.