# 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.

Canonical: https://receiptscanner.co/tools/markup-calculator
Updated: 2026-10-28 · Sources re-checked by: 2027-10-28

This is a free interactive calculator that runs in the browser. Nothing you type is stored or sent. Results are estimates.

## How it works

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 and the margin it really gives**

| 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 and the markup you need to reach it**

| 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

1. Markup 40%: price = 100 × 1.40 = $140.00. Profit $40.00, margin = 40 ÷ 140 = 28.57%.
2. Margin 40%: price = 100 ÷ (1 − 0.40) = $166.67. Profit $66.67, markup = 66.67 ÷ 100 = 66.67%.
3. Cost $60 and price $100: profit $40.00, markup = 40 ÷ 60 = 66.67%, margin = 40 ÷ 100 = 40%.
4. Same cost, same word "40%", very different price: $140.00 against $166.67.

## FAQ

### 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.

## Sources

- [Markup (business): markup is the amount added to cost, usually as a percentage of cost](https://en.wikipedia.org/wiki/Markup_(business)) (checked 2026-10-28)
- [Profit margin: profit as a percentage of revenue, and how it differs from markup](https://en.wikipedia.org/wiki/Profit_margin) (checked 2026-10-28)

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.