Profit Margin Calculator · Practical guide
How to Calculate Markup Percentage
Subtract cost from price, divide by cost, multiply by 100 — then use the same number to set future prices.
At a glance
The Formula
Markup percentage measures how much is added on top of cost: markup % = (selling price - cost) / cost x 100. An item bought for $50 and sold for $80 has a markup of (80 - 50) / 50 x 100 = 60%. Enter cost and revenue above and the calculator shows the markup alongside margin, profit, and the rest.
Interactive tool
Profit Margin Calculator
Enter your own values, then compare the result with the examples below.
Profit Analysis
Worked Examples
| Cost | Selling Price | Profit | Markup |
|---|---|---|---|
| $30 | $45 | $15 | 50% |
| $50 | $80 | $30 | 60% |
| $120 | $150 | $30 | 25% |
| $200 | $300 | $100 | 50% |
Setting Prices From a Target Markup
The formula reverses cleanly: price = cost x (1 + markup / 100). A $50 cost at a 60% markup prices at 50 x 1.60 = $80. Doubling your money is a 100% markup — a $75 cost becomes a $150 price. The calculator accepts cost plus markup directly, so you can test price points without any manual math.
Markup Is Not Margin
The same $50-to-$80 sale that carries a 60% markup has only a 37.5% margin, because margin divides the $30 profit by the $80 price instead of the $50 cost. Quoting one when you mean the other leads to systematic underpricing — a business targeting a "40% margin" that actually applies a 40% markup earns only a 28.6% margin on every sale.
Frequently Asked Questions
Is markup the same as margin?
No. Markup divides profit by cost; margin divides profit by revenue. A 60% markup on a $50 item is only a 37.5% margin on the $80 price.
What does a 100% markup mean?
The selling price is double the cost. A $75 item marked up 100% sells for $150, which corresponds to a 50% margin.
Can markup be negative?
Yes. Selling below cost produces a negative markup, representing a loss. The calculator accepts markup values down to -100%.
How do I convert markup to margin?
Use margin = markup / (1 + markup). A 50% markup converts to 0.5 / 1.5 = 33.3% margin.