How do I calculate markup?

Markup = (Selling Price − Cost) ÷ Cost × 100. A $25 profit on a $100 cost is a 25% markup.

How do I calculate selling price from markup?

Selling price = cost × (1 + markup rate). A $100 cost with a 25% markup is $100 × 1.25 = $125.

What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by selling price. A $100 cost and $125 selling price is a 25% markup and a 20% margin.

Is a 50% markup the same as a 50% margin?

No. A 50% markup on $100 produces a $150 selling price and a 33.3% margin. A 50% margin on $100 cost requires a $200 selling price and is a 100% markup.

Markup Calculator

Calculate selling price and profit from your cost and markup percentage.

Pricing result

Selling price

$125.00

Cost: $100.00
Selling price: $125.00
Profit: $25.00
Markup: 25.0%
Margin: 20.0%

Markup measures profit as a percentage of cost. The equivalent margin is shown for comparison.

A 25.0% markup produces a 20.0% margin.

Create an invoice with this price

Once you know what to charge, create an invoice using the calculated selling price. Open the Invoice Generator or browse all calculators.

Markup to margin

The same profit is a higher markup than margin because markup is based on cost.

Markup	Margin
10%	9.1%
20%	16.7%
25%	20.0%
33.3%	25.0%
50%	33.3%
100%	50.0%

What is markup?

Markup is profit expressed as a percentage of cost.

Markup = (Selling Price − Cost) ÷ Cost × 100

Cost $100 and selling price $125 is $25 profit and a 25% markup.

How to calculate selling price from markup

Selling Price = Cost × (1 + Markup Rate)

$100 cost with 25% markup: $100 × 1.25 = $125.

Markup vs. margin

Markup and margin both describe profit, but they use different starting points. Markup compares profit with cost. Margin compares profit with selling price.

A product that costs $100 and sells for $125 has a 25% markup and a 20% margin. Use the Margin Calculator when you want to price from a target margin instead.

What is cost-plus pricing?

Cost-plus pricing starts with the cost of a product or service and adds a markup to determine the selling price.

Frequently asked questions

How do I calculate markup?: Markup = (Selling Price − Cost) ÷ Cost × 100. A $25 profit on a $100 cost is a 25% markup.
How do I calculate selling price from markup?: Selling price = cost × (1 + markup rate). A $100 cost with a 25% markup is $100 × 1.25 = $125.
What is the difference between markup and margin?: Markup is profit divided by cost. Margin is profit divided by selling price. A $100 cost and $125 selling price is a 25% markup and a 20% margin.
Is a 50% markup the same as a 50% margin?: No. A 50% markup on $100 produces a $150 selling price and a 33.3% margin. A 50% margin on $100 cost requires a $200 selling price and is a 100% markup.
What is cost-plus pricing?: Cost-plus pricing starts with the cost of a product or service and adds a markup to determine the selling price.

Price from a target profit margin with the Margin Calculator. Put the selling price on an invoice with the Invoice Generator or check totals in the Invoice Calculator. For pricing a service, see How to Price Your Services or browse All Calculators.