Give any two of cost, price, margin and markup and get the rest, with the profit.
Markup is the profit as a percentage of what the item cost you. Add 25% markup to a cost of 80 and the price is 100, because 80 × 1.25 = 100. This page opens on that example and works in either direction: type the cost and the markup to get the selling price, type the price and the markup to get the cost, or type cost and price to read the markup. It also shows the profit and the margin, which is the same profit as a share of the price, so the 25% markup above is a 20% margin. The two are easy to mix up when setting prices: a 50% markup is a 33.33% margin, and a margin can never reach 100% while a markup can. Switch the I know choice to another pair of values at any time. Values have no currency symbol and are rounded to 2 decimals only when shown. This is an estimate, not financial advice.
The I know choice has five pairs: cost and price, cost and margin, cost and markup, price and margin, price and markup. Only the two you choose are shown as boxes, and the page works out the other two plus the profit. Margin and markup together are not offered, because they describe the same ratio from two sides and do not fix the amounts: a 25% markup and a 20% margin fit a cost of 80 and a cost of 8,000. Cost and price must be more than 0. Margin goes from -1,000 to below 100, markup from -100 (excluded) upwards, so a loss can be entered as a negative figure.
Profit = price − cost. Margin % = profit ÷ price × 100. Markup % = profit ÷ cost × 100. The reverse formulas are price = cost ÷ (1 − margin ÷ 100) and price = cost × (1 + markup ÷ 100), and cost = price × (1 − margin ÷ 100) or price ÷ (1 + markup ÷ 100). With cost 60 and price 100 the profit is 40, the margin 40% and the markup 66.67%. The page opens on exactly this example and the box under the answer shows each step with your numbers.
Both use the same profit but divide by different things, so the same sale has two different percentages. Margin is a share of the selling price and can never reach 100%. Markup is a share of the cost and can be above 100%. A 25% markup on a cost of 80 gives a price of 100 and a margin of only 20%. A 25% margin on a price of 200 means a cost of 150 and a markup of 33.33%. Mixing the two up when setting a price is a common reason a price comes out too low.
Calculations use full precision and values are rounded to 2 decimals only when shown. A margin of 100 or more, or a markup of -100 or less, is refused with a message under the box, because it would mean a cost of 0 or a price of 0 or below. The price is taken as before any sales tax, and costs other than the one you type (shipping, fees, discounts) are not added. This is an estimate, not financial advice.
Markup % = (price − cost) ÷ cost × 100. For a cost of 60 and a price of 100 that is 40 ÷ 60 × 100 = 66.67%. Choose Cost and price on this page and the markup appears with the margin, 40%, next to it.
Price = cost × (1 + markup ÷ 100). A cost of 80 with a 25% markup gives 80 × 1.25 = 100.00, a profit of 20.00 and a margin of 20%. Choose Cost and markup to do this.
Margin = markup ÷ (100 + markup) × 100. A 50% markup is 50 ÷ 150 = 33.33% margin, and a 100% markup (price double the cost) is a 50% margin.
Margin is profit ÷ price and markup is profit ÷ cost. With cost 60 and price 100 the profit is 40, so the margin is 40% and the markup is 66.67%. Same sale, two percentages. Markup can exceed 100%, margin cannot.
Choose Cost and margin. Price = cost ÷ (1 − margin ÷ 100). For a cost of 75 and a 25% margin the price is 75 ÷ 0.75 = 100.00, the profit 25.00 and the markup 33.33%.
Choose Price and margin. Cost = price × (1 − margin ÷ 100). For a price of 200 and a 25% margin the cost is 150.00 and the profit 50.00.
A margin of 100% would need a cost of 0, since profit ÷ price = 1 only when profit equals price. The page asks for a margin below 100 in that case. Negative margins are allowed and mean a loss.
No. It uses only the numbers you type. Take sales tax out of the price first, and add any shipping or fees to the cost if you want them counted.