How to use the markup calculator

1. Choose Selling price from cost and markup or Markup from cost and selling price.
2. Enter the cost and either the markup percent or the selling price.
3. Read the selling price, markup, profit and the equivalent profit margin.

Formula

Markup is based on cost. Margin is based on selling price. They describe the same profit in different ways.

Worked example: 50 percent markup

Common markup to margin pairs

25% markup is 20% margin. 50% markup is 33.33% margin. 100% markup is 50% margin. 150% markup is 60% margin.

When to use markup instead of margin

Markup is the natural way to set a price when you start from cost, as contractors and retailers often do. Margin is the better way to compare profitability across products or against targets, because it is tied to revenue. Pick one, and convert to the other when you talk to someone who uses the second.

A worked cost-plus job

A contractor's materials and labor cost $1,200. A 25 percent markup gives a price of $1,500. The profit is $300, which is 20 percent of the price. Quoting a 25 percent "margin" instead would require charging $1,600.

Assumptions and limits

• Cost must be greater than zero. A markup on zero cost is not defined.
• Markup must be above -100 percent.
• Taxes and fees are not included unless added to the cost.

Formulas reviewed October 10, 2026. See the calculation methodology for how SumPanda rounds, tests and sources its formulas.

Frequently asked questions