Price it right, keep the margin.
Enter your cost and the markup you want. See the selling price, your profit, and the two numbers people mix up the most: markup and margin. Or type a price and get the markup back.
The numbers
Change the percent to set your markup, or type a selling price and the markup updates to match.
Markup or margin?
How the selling price splits
Cost vs selling price
Price at different markups
Deal scorecard
Markup levels side by side
Every row starts from your cost and applies the markup in the first column. Margin is the same profit measured against the selling price.
| Markup | Selling price | Profit | Margin | Order profit |
|---|
Markup and margin, explained
Markup vs margin: the difference that trips people up
Markup and margin describe the same profit from two different angles. Markup is your profit measured against what the item cost you: profit divided by cost. Margin is that same profit measured against what the customer pays: profit divided by the selling price. Because the selling price is always larger than the cost, the margin percent is always smaller than the markup percent on the same sale.
Say an item costs you 100 dollars and you add a 40% markup. The price is 140 dollars and the profit is 40 dollars. As markup that profit is 40% of the 100 dollar cost. As margin it is 28.6% of the 140 dollar price. Same 40 dollars, two different percentages. Confusing the two is one of the fastest ways to underprice a product, so always be clear about which one a supplier or marketplace is quoting.
How to price from a target margin
Most retailers and marketplaces think in margin, because margin tells you what share of each sale you actually keep. To hit a target margin, do not simply add that percent as markup. Instead divide your cost by one minus the margin. For a 40% margin you price at cost divided by 0.60, which works out to a 66.7% markup. For a 50% margin you double the cost, a 100% markup.
This calculator lets you work in either direction. Type a markup percent and it shows the price and the resulting margin, or type the selling price you have in mind and it tells you the markup and margin behind it. The table then lays out common markup levels from 10 to 100 percent so you can see how price, profit, and margin move together before you commit to a number.
Common questions
What is the difference between markup and margin?
Markup is profit as a percent of your cost, while margin is profit as a percent of the selling price. On the same sale the markup percent is always higher than the margin percent, because the price is larger than the cost.
How do I calculate the selling price from a markup?
Multiply your cost by one plus the markup as a decimal. A 100 dollar cost with a 40% markup sells for 100 times 1.40, which is 140 dollars.
How do I turn a selling price back into a markup?
Divide the selling price by the cost, subtract 1, then multiply by 100. A 140 dollar price on a 100 dollar cost is 140 divided by 100, minus 1, which gives a 40% markup.
What markup gives a 50 percent margin?
A 100% markup, meaning you double the cost. To get any target margin, divide the cost by one minus the margin, so a 50% margin is cost divided by 0.50.
Do selling fees change my profit?
Yes. Marketplace and payment fees come out of the selling price, so enter your fee percent and the calculator shows the profit and net margin you actually keep after those fees.
Is a higher markup always better?
Not always. A higher markup lifts the price and profit per item, but if the price gets too high you may sell fewer units. The best markup balances profit per sale against how many units you can move.
Estimates for planning only. Real profit depends on your true landed cost, shipping, payment and selling fees, returns, taxes and discounts. Check every figure before you set a price.