Free Tool

Free Markup Calculator — Cost to Price Instantly

Calculate selling price from cost and markup, or find your markup from cost and price. Includes markup vs. margin conversion.

Enter Your Numbers
Choose your calculation mode and enter the values
$
%

Your desired profit as a percentage of cost

Enter cost and either markup or selling price to see results

Common Examples
CostMarkupSelling PriceProfitMargin
$5060%$80$3037.5%
$10050%$150$5033.3%
$200100%$400$20050%

Price Your Products Correctly

Eonebill helps freelancers and businesses calculate margins, track profitability, and invoice clients.

Markup vs. Margin: What Every Business Owner Must Know

If you've ever been confused about the difference between markup and margin, you're not alone. These two concepts trip up even experienced business owners, and the confusion can silently destroy your profitability.

Markup is what you add to your cost. If you buy something for $50 and apply a 60% markup, you add $30 — selling it for $80. Margin is what you keep from the sale. From that $80 selling price, you keep $30, which is 37.5% of the selling price. Same numbers, different percentages depending on what you're measuring against.

Here's the practical implication: many retailers think they're achieving healthy margins when they say "I markup everything by 50%" — but a 50% markup only yields a 33% margin. On $100,000 in sales, that's $33,000 in gross profit. If your costs are actually $67,000, you're not building the business you think you are.

Use our markup calculator in cost-to-price mode to set your prices, and in price-to-markup mode to analyze existing pricing. The margin conversion built into the results gives you both perspectives instantly. And always check our related Profit Margin Calculator to see the full picture.

Frequently Asked Questions

What is markup and how is it different from profit margin?

Markup is the percentage you add to your cost to determine the selling price. Profit margin is the percentage of the selling price that is profit. For example: a $50 product with a 60% markup sells for $80, but your profit margin is only 37.5% ($30 profit ÷ $80 price). Many people confuse these — markup is always higher than margin for the same price.

What is the markup formula?

Markup % = (Selling Price − Cost) ÷ Cost × 100. To calculate selling price from cost and markup: Selling Price = Cost × (1 + Markup %). To calculate selling price from cost and desired margin: Selling Price = Cost ÷ (1 − Margin %).

What is a good markup percentage?

Markup varies by industry: retail typically uses 50-100%, wholesale/distribution 10-25%, manufacturing 25-50%, professional services 75-150%, and freelance creative work 100-200%. Your markup should cover your costs, leave room for profit, and remain competitive in your market.

Why is knowing my markup important?

Without knowing your markup, you risk pricing too low and working for less than minimum wage, or pricing too high and losing clients. Markup ensures you cover costs and earn a living. It also gives you room to offer discounts without undercutting your survival threshold.

How do I convert between markup and margin?

Margin to Markup: Markup % = Margin % ÷ (1 − Margin %). Markup to Margin: Margin % = Markup % ÷ (1 + Markup %). For example, a 60% markup = 37.5% margin. A 50% margin = 100% markup. Always know which number you're working with to avoid pricing mistakes.

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