How we calculate this
See methodology- Multiply cost by one plus the markup percentage.
- Subtract cost from the selling price to get profit.
- Divide profit by selling price to show the resulting margin.
Markup Calculator
Markup Calculator
Find selling price, profit, and resulting margin from cost and markup.
Formula
Selling price
Cost × (1 + Markup % / 100) Profit
Selling price - Cost Margin %
(Profit / Selling price) × 100 Worked example
If your cost is $50 and you want a 40% markup, here is the result.
- Selling price is $50 × 1.40 = $70.00.
- Profit is $70.00 - $50.00 = $20.00.
- Margin is $20.00 / $70.00 = 28.57%.
Frequently Asked Questions
Does a 40% markup mean a 40% margin?
No. A 40% markup on cost results in a lower margin because margin is measured against the final selling price.
Why does margin end up smaller than markup?
Margin uses selling price as the denominator, so it is lower than markup for the same scenario.
Can I use this for services?
Yes. If you know your delivery cost or labor cost, the same pricing math applies.
Methodology and Trust Note
See full methodologyThese tools are designed to make the math visible, keep assumptions clear, and give you a practical planning result you can review quickly.
This calculator is for educational and planning purposes only. It does not replace professional financial, tax, accounting, or business advice.