Markup Calculator
Convert between cost, markup %, and selling price. Handles reverse calculation too.
A 100% markup is only a 50% margin. A 40% markup is only a 28.5% margin. Don't confuse the two when quoting.
Pricing strategy books
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About this tool
Markup is what you add to cost to get selling price. A 40% markup on a $10 item = $14 selling price (add $4). It's often confused with margin — a 40% markup is only a 28.5% margin. Retailers typically talk in markup; accountants and CFOs talk in margin. Get it wrong and your quotes will systematically underprice.
Formula & notes
Selling Price = Cost × (1 + Markup%). Margin% = Markup% / (1 + Markup%). Inverse: Cost = Price / (1 + Markup%). Enter any two and the third computes. Useful for sales quotes, retail pricing, and reverse-engineering competitor costs from a known selling price and industry-typical margin.
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