How to calculate markup
Price = Cost × (1 + Markup %) · Margin = Profit ÷ Price
Worked example. Selling price: $60.00.
Example inputs — Cost: $40.00; Markup: 50 %. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup equals a 33.3% margin.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
What's the difference between markup and margin?
Markup divides profit by cost; margin divides profit by price, so margin is always lower.