How to use
Markup expresses profit as a percentage of cost, while margin expresses the same profit as a percentage of selling price. This calculator keeps both denominators visible and works forward or backward for pricing.
- Choose whether you know cost plus markup, cost plus selling price, or cost plus target margin.
- Enter monetary values in the same currency and percentages as percent values.
- Review selling price, profit, markup, margin and price-to-cost multiple.
How it is calculated
Example
Example: cost 100 with 50% markup gives a 150 selling price and 50 profit. Markup is 50% because 50÷100, but margin is only 33.33% because 50÷150.
Important notes
This is arithmetic for pricing, not a recommendation for what you should charge. Include the costs that matter to your use case, such as fees or fulfillment, when appropriate. Markup and profit margin are not interchangeable; Mihsaba also keeps a dedicated profit-margin intent.
Frequently asked questions
What is the difference between markup and margin?
Markup divides profit by cost; margin divides the same profit by selling price.
How do I price from a target margin?
Price = cost ÷ (1 − margin as a decimal), with target margin below 100%.
Can markup be negative?
Mathematically yes when selling price is below cost, but that represents a loss rather than a positive markup.
Is this calculator free?
Yes. It is free to use and requires no account.