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Markup Calculator
Enter your cost and one more number: the markup you want, the margin you want, or the price you charge. The calculator gives the other two and the profit in dollars. A $100 cost with a 40% markup sells for $140.00, which is only a 28.6% margin.
Updated · Sources re-checked by
140 selling price
| Cost | 100 |
| Profit | 40 |
| Markup (profit ÷ cost) | 40% |
| Margin (profit ÷ price) | 28.57% |
Works in any currency. You can type 40, 40%, 1,000 or 12.5. Nothing you type is saved or sent anywhere.
How markup and margin are calculated
Markup is profit as a share of your COST. Margin is profit as a share of the PRICE. Price = cost × (1 + markup). Profit = price − cost. Markup = profit ÷ cost. Margin = profit ÷ price. To convert: margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). A margin can never reach 100%, because the cost would have to be zero, so the margin box must stay under 100.
| Markup | Margin | Price on a $100 cost |
|---|---|---|
| 10% | 9.1% | $110.00 |
| 20% | 16.7% | $120.00 |
| 25% | 20% | $125.00 |
| 30% | 23.1% | $130.00 |
| 40% | 28.6% | $140.00 |
| 50% | 33.3% | $150.00 |
| 75% | 42.9% | $175.00 |
| 100% | 50% | $200.00 |
| Margin | Markup needed | Price on a $100 cost |
|---|---|---|
| 10% | 11.1% | $111.11 |
| 20% | 25% | $125.00 |
| 25% | 33.3% | $133.33 |
| 30% | 42.9% | $142.86 |
| 40% | 66.7% | $166.67 |
| 50% | 100% | $200.00 |
Worked example: the same $100 cost, three ways in
- Markup 40%: price = 100 × 1.40 = $140.00. Profit $40.00, margin = 40 ÷ 140 = 28.57%.
- Margin 40%: price = 100 ÷ (1 − 0.40) = $166.67. Profit $66.67, markup = 66.67 ÷ 100 = 66.67%.
- Cost $60 and price $100: profit $40.00, markup = 40 ÷ 60 = 66.67%, margin = 40 ÷ 100 = 40%.
- Same cost, same word "40%", very different price: $140.00 against $166.67.
Common questions
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by price. The same sale has a bigger markup than margin, so a 40% markup is not a 40% margin.
How do I calculate selling price from markup?
Multiply the cost by one plus the markup. A $100 cost with a 40% markup is 100 × 1.40 = $140.
How do I calculate selling price from a margin?
Divide the cost by one minus the margin. For a 40% margin on a $100 cost, 100 ÷ 0.60 = $166.67. Do not just add 40%, because that gives a 28.6% margin.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 25% markup is 0.25 ÷ 1.25 = a 20% margin. The table above shows common pairs.
Should contractors use markup or margin?
Either works if you stay consistent. Margin is easier to compare with overhead and with a profit goal, because both are shares of the price. Markup is easier to apply to a cost list.
Is markup the same as profit?
No. Markup is a percentage, and profit is the dollar amount left after cost. Overhead such as insurance and a truck is paid from that profit, so it is not all take-home money.
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Sources
- Markup (business): markup is the amount added to cost, usually as a percentage of cost (checked October 28, 2026)
- Profit margin: profit as a percentage of revenue, and how it differs from markup (checked October 28, 2026)
This calculator is an estimate for planning. It does not include tax, overhead or discounts, so check your numbers with your own accounts before you set prices.