Free tool Markup calculator: price from cost, and markup to margin
Markup is profit as a share of cost: price = cost × (1 + markup). Enter any two of cost, markup and selling price to get the third, see the gross margin the same price gives you, and find the markup a target margin needs.
- Any two values solve the third
- Shows the matching margin
- Runs locally
Price, markup or cost
Leave the value you want empty. If all three are filled, the price is recalculated from cost and markup. Target margin is optional.
What one unit costs you to buy or make.
Profit as a share of cost. 50 means price is cost × 1.5.
Leave empty to calculate it from cost and markup.
Optional. The margin you want; shows the markup and price that deliver it.
Selling price
$60.00
Cost × (1 + markup).
Markup
50.0%
(Price − cost) ÷ cost.
Share these inputs: the values go after the # in the link, so they never reach a server.
https://tapcub.com/tools/markup-calculator
Version v1.0Updated Update history
One profit, two percentages
Markup and margin describe the same dollars from two directions.
Markup
How much you add on top of cost. A 50% markup on a $40 item adds $20, so it sells for $60. Buyers and suppliers often talk in markup because it starts from the number you know: cost.
Gross margin
The same $20 as a share of the $60 price: 33.3%. Finance and investors talk in margin because it is measured against revenue, which is what the income statement starts from.
Markup for a target margin
If the plan says "40% margin", you need a 66.7% markup, not 40%. The higher the target margin, the faster the required markup grows: 50% margin needs 100%, 75% needs 300%.
Price for a target margin
Cost ÷ (1 − margin). $40 at a 40% margin is $66.67. Round to your price points afterwards and check the margin again.
Markup is not the profit you keep. Fees, shipping, ads and overhead still come out of the margin. Use the profit margin calculator to see net margin after those costs.
Three ways to use it
Pick the value you are missing.
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1
Price a product
Enter cost and your standard markup, leave price empty. Keystone pricing — doubling the cost — is a 100% markup.
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2
Check a supplier's suggested price
Enter cost and the recommended retail price, leave markup empty, and read the markup and the margin it leaves you.
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3
Hit a margin target
Keep cost, add the target margin. The calculator shows the markup and price that deliver it.
Markup formula and margin conversion
Markup divides profit by cost; margin divides the same profit by price. Converting between them needs no cost or price at all.
- Markup = (price − cost) ÷ cost; price = cost × (1 + markup)
- Margin = markup ÷ (1 + markup)
- Markup = margin ÷ (1 − margin)
- Markup can exceed 100%; margin stays below 100% while cost is above zero
Selling price
cost × (1 + markup)
$40 × 1.5 = $60
Markup
(price − cost) ÷ cost
($60 − $40) ÷ $40 = 50.0%
Margin from markup
markup ÷ (1 + markup)
0.5 ÷ 1.5 = 33.3%
Markup from margin
margin ÷ (1 − margin)
0.4 ÷ 0.6 = 66.7%
Price for a target margin
cost ÷ (1 − margin)
$40 ÷ 0.6 = $66.67
Markup ↔ margin conversion table
Read across: a markup on the left gives the gross margin on the right, and the other way round. It holds for any cost and price.
| Markup | Gross margin | $40 cost sells for |
|---|---|---|
| 10% | 9.1% | $44.00 |
| 20% | 16.7% | $48.00 |
| 25% | 20.0% | $50.00 |
| 30% | 23.1% | $52.00 |
| 40% | 28.6% | $56.00 |
| 50% | 33.3% | $60.00 |
| 66.7% | 40.0% | $66.67 |
| 75% | 42.9% | $70.00 |
| 100% | 50.0% | $80.00 |
| 150% | 60.0% | $100.00 |
| 200% | 66.7% | $120.00 |
| 300% | 75.0% | $160.00 |
The two columns meet only at zero. Below about 20% they are close; above that the gap widens quickly, which is why mixing them up costs real money on high-markup goods.
Markup mistakes that cost margin
All four come from using the wrong base.
Using the margin target as markup
A 40% markup gives a 28.6% margin. To reach 40% margin you need 66.7% markup.
Discounting by the markup
A 50% markup and then a 50% discount does not get you back to cost: $60 − 50% = $30, below the $40 cost.
Marking up the wrong cost
Use landed cost — purchase price plus inbound freight and duties — or every markup is smaller than it looks.
Treating markup as profit
Markup is before fees, shipping, ads and rent. A healthy markup can still leave a thin net margin.
See how your prices sell
Prices are set in a spreadsheet; the effect shows up in orders. TapCub measures the order side from your purchase events.
Average order value and GMV
The ecommerce template computes GMV, average order value and order conversion from purchase events.
Learn morePurchase funnel
View item, add to cart, checkout, purchase — split by item category or coupon to see where a price change shows up.
Learn moreChannel return after cost
Import ad spend and compare channels on the same order definition.
Learn moreMarkup FAQ
Still have a question?
Chat with the team behind TapCub — we usually reply within a few hours on business days.
What is the markup formula?
Markup = (selling price − cost) ÷ cost × 100%. To set a price, multiply cost by (1 + markup): a $40 item with a 50% markup sells for $60.
How do I calculate markup percentage from cost and price?
Subtract cost from price and divide by cost. $60 price and $40 cost: (60 − 40) ÷ 40 = 50%.
What is the difference between markup and margin?
Both use the same profit. Markup divides it by cost, margin by price. $20 profit on a $40 item sold at $60 is a 50% markup and a 33.3% margin. See the profit margin calculator for margin after fees and costs.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). A 40% margin is 0.4 ÷ 0.6 = 66.7% markup. The other way: margin = markup ÷ (1 + markup).
Is a 100% markup a 100% margin?
No. A 100% markup doubles the cost — often called keystone pricing — and gives a 50% margin. A 100% gross margin would need a cost of zero.
Can markup be more than 100%?
Yes. Markup has no upper limit: a $5 item sold for $20 has a 300% markup and a 75% margin.
Update history
New features, fixes and data refreshes for this tool, newest first.
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· v1.0
LaunchedFirst release.
Missing something or found an error? Tell us — requests that come up often go into the next update. All tool updates
From price to plan
With a price and a margin, check how many units cover your fixed costs and what each order is worth.