Convert between margin and markup and compute price from cost.
Please do not make financial decisions based on these results.
What is the Margin and Markup Calculator?
Convert between margin and markup and compute price from cost. To use the Margin and Markup Calculator, enter cost, target margin; it returns selling price, equivalent markup, profit per unit, and shows them instantly as you type.
Where the Margin and Markup Calculator fits
Convert between margin and markup and compute price from cost. The main figure it returns is the Selling price, worked out from the values you enter.
It belongs with the other sales, discounts & pricing tools. If you are comparing options or checking a result from another angle, try the Markup Calculator, Markup Calculator Classic or the Margin and Sales Tax Calculator.
How to use the Margin and Markup Calculator
- Enter your numbers. Start with Cost ($), Target margin (%). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Selling price, and the cards below show Equivalent markup, Profit per unit. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Margin and Markup Calculator using the default values shown in the calculator above:
Inputs
| Cost ($) | 50 |
|---|---|
| Target margin (%) | 35 |
Results
| Selling price | $76.92 |
|---|---|
| Equivalent markup | 53.85% |
| Profit per unit | $26.92 |
With these inputs the calculator returns Selling price: $76.92. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Cost ($) from 50 to 60 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Selling price | $76.92 | $92.31 | +20% |
| Equivalent markup | 53.85% | 53.85% | 0% |
| Profit per unit | $26.92 | $32.31 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Margin and Markup Calculator reports Selling price, equivalent markup and profit per unit. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Which should I use for pricing?
Retail pricing often uses markup; financial reporting uses margin.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup equals a 33% margin.
Is sales tax included?
Only where a tool has a tax field. Enter your own local rate because it varies by location.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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