Formula
Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).
Business
Margin Markup Calculator
Convert cost, markup and profit margin into selling price, gross profit and the difference between markup and margin.
Calculator
Working calculator
Live result100.00 price · 20.00% margin20.00 gross profit · target-margin price 100.00
Formula used
Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).
This is the method behind the answer, so the result can be checked rather than simply trusted.What-if check
Markup sensitivity
Same cost, with markup moved around the current input. Notice how the resulting margin is lower than the markup because margin uses selling price as the denominator.
| Markup | Selling price | Resulting margin |
|---|---|---|
| 15.00% | 92.00 | 13.04% |
| 25.00% | 100.00 | 20.00% |
| 35.00% | 108.00 | 25.93% |
| Target margin | Required price | Gross profit |
|---|---|---|
| 20.00% | 100.00 | 20.00 |
Visual proof
Cost vs gross profit
The blue segment is cost. The gold segment is gross profit. Margin is the gold share of the whole selling price, not a percentage of the blue cost segment.
Printable calculation report
Result: 100.00 price · 20.00% margin. Assumption: Cost is the entered base cost before gross profit is added.
- Cost
- 80
- Markup
- 25
- Target margin
- 20
- Page/date context
- 2026-05-16 UTC page version
- Page URL
- https://calculationtime.com/calculators/margin-markup-calculator
Worked example
Cost 80 with 25% markup gives price = 80 × 1.25 = 100. Gross profit is 100 − 80 = 20. Margin is 20 ÷ 100 × 100 = 20%. To target a 20% margin from the same cost, price = 80 ÷ (1 − 0.20) = 100.
Professional note
Master’s Tip: decide whether your quote is controlled by markup on cost or margin on selling price before sending it. If material waste, card fees, callbacks or discounts are likely, put them into cost first or the “profitable” price can disappear on the job.
Regional and unit assumptions
Standard or basis: transparent gross-profit arithmetic. No tax, accounting or industry pricing standard is claimed; use the calculator as a pricing check before applying local tax rules, accounting policy or contract terms.
Assumptions and limitations
- Cost is the entered base cost before gross profit is added.
- Markup percentage is measured against cost, while margin percentage is measured against selling price.
- The target-margin price is only valid below 100% margin; the input is capped below 100% to avoid division by zero.
- This is gross pricing arithmetic only. It does not include tax, VAT/GST, discounts, payment fees, freight, waste, warranty risk, overhead allocation or legal accounting advice unless you include those costs yourself.
Methodology & Accuracy
How this calculator is checked
CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.
Formula used
Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).
Standard or basis
Standard or basis: transparent gross-profit arithmetic. No tax, accounting or industry pricing standard is claimed; use the calculator as a pricing check before applying local tax rules, accounting policy or contract terms.
Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.Master's Tip
Master’s Tip: decide whether your quote is controlled by markup on cost or margin on selling price before sending it. If material waste, card fees, callbacks or discounts are likely, put them into cost first or the “profitable” price can disappear on the job.
Related calculators
Questions
What is the difference between markup and margin?
Markup compares profit with cost. Margin compares profit with selling price. A 25% markup on cost produces a 20% margin because the denominator changes.
How do I calculate selling price from markup?
Multiply cost by 1 plus the markup percentage divided by 100. For example, 80 with 25% markup is 80 × 1.25 = 100.
How do I calculate price from target margin?
Divide cost by 1 minus the target margin as a decimal. For a 20% target margin on cost 80, use 80 ÷ 0.80 = 100.
Why can markup be higher than margin?
Markup uses cost as the base. Margin uses the final selling price as the base, so the margin percentage is lower than the equivalent markup percentage for profitable sales.
Does this include VAT, GST or sales tax?
No. It is gross pricing arithmetic before tax. Add tax only after you know whether your price is tax-exclusive or tax-inclusive under the rules you follow.
Calculation note
Markup and margin are often confused because both describe profit, but they answer different business questions. Markup asks how much profit is added to cost; margin asks what share of the final selling price remains as gross profit.
Markup starts from cost
Markup is useful when a seller begins with a known cost and wants to add a chosen profit percentage. It is common in quoting, retail pricing and trade estimates because the calculation follows the order of the job: cost first, price second.
Margin starts from the selling price
Margin is useful when comparing sales performance because it shows gross profit as a share of revenue. Two jobs can use different markups but still be compared by gross margin once their final selling prices are known.
The practical trap is using the wrong denominator
A 25% markup is not the same as a 25% margin. On an 80 cost, 25% markup gives a 100 selling price and 20 profit, which is 20% of the selling price. The calculator keeps both denominators visible so the pricing decision is not hidden behind one percentage.
Sources and further readingHarvard Business School Online: How to Calculate Profit MarginInvestopedia: Markup