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Business, sales and pricing

Markup calculator

Multiplier and percentage markup from cost and selling price.

Business and Sales
Pricing Calculator

Result

Fill in the fields and the result appears as you type.

B

Type the values into the fields and leave the rest to me.

Estimate — not a substitute for professional advice.

How to use

Markup is how far above cost the selling price sits. It shows up two ways: as a multiplier (2.5× cost) and as a percentage (150% above cost). Both describe the same gap, but retail usually quotes the multiplier while reports quote the percentage.

  • Apply one repeatable pricing rule across a product list.
  • Check that a multiplier agreed with a supplier was actually applied.
  • Turn a known markup into a margin so it can be compared with reports.
  1. Enter the product cost.
  2. Enter the selling price in use.
  3. Read the multiplier, the percentage markup and the equivalent margin.

Formula

Markup = price ÷ cost · Markup (%) = ((price − cost) ÷ cost) × 100

Example

A cost of 60 with a price of 100 gives a markup of 1.6667 (or 66.67%) and a margin of 40%. A markup of 2.0 always means a 50% margin, whatever the absolute values.

Limitations

  • A zero cost has no markup: the division is refused rather than returning infinity.
  • Markup is not margin; charging 60% markup expecting a 60% margin is the classic pricing mistake.

Frequently asked questions

Does 100% markup mean a 50% margin?

Yes. Doubling the cost makes profit equal to cost — half of the price, so a 50% margin.

How do I convert markup into margin?

Margin = markup ÷ (1 + markup). With a markup of 1.6667 the margin is 0.625, that is, 40%.

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