Markup & Margin Calculator (with Tax)
Choose whether to calculate by markup % or margin %, and optionally add tax.
The Markup Calculator will let users input cost price and markup percentage (or selling price) to calculate selling price, profit, and margin.
Markup Calculator –Calculate Selling Price, Profit, Markup & Margin (With Steps)
Pricing products correctly is one of the most important decisions for any business. Whether you run a small shop, sell online, or study business and accounting, understanding markup and profit margin is essential for success.
Our free online Markup & Margin Calculator helps you quickly:
• Calculate selling price
• Find profit amount
• Understand markup percentage
• Understand margin percentage
• See a clear step-by-step breakdown of every calculation
Simply enter your cost price and either a markup percentage or a desired margin percentage, and the calculator does the rest.
What Is Markup?
Markup is the percentage added to the cost of a product to determine its selling price.
Markup Formula:
Selling Price = Cost Price × (1 + Markup ÷ 100)
Example:
If a product costs $100 and you apply a 30% markup:
Selling Price = 100 × (1 + 30/100)
Selling Price = 100 × 1.30 = $130
Profit = $130 − $100 = $30
Markup focuses on how much you add on top of your cost.
What Is Profit Margin?
Profit margin shows how much of the selling price is profit.
Margin Formula:
Margin (%) = (Profit ÷ Selling Price) × 100
Or if you want to find selling price using margin:
Selling Price = Cost Price ÷ (1 − Margin ÷ 100)
Example:
If your product costs $100 and you want a 30% margin:
Selling Price = 100 ÷ (1 − 0.30)
Selling Price = 100 ÷ 0.70 = $142.86
Profit = $142.86 − $100 = $42.86
Margin looks at profit as a portion of sales revenue.
Key Difference Between Markup and Margin
Many people confuse markup and margin, but they are not the same.
| Concept | Based On | Meaning |
|---|---|---|
| Markup | Cost price | How much you add to cost |
| Margin | Selling price | Profit portion of revenue |
Quick Example:
Cost = $100
Selling Price = $150
Profit = $50
Markup = (50 ÷ 100) × 100 = 50%
Margin = (50 ÷ 150) × 100 = 33.33%
Same product, different percentages.
How the Markup & Margin Calculator Works
Our calculator is designed to be simple and educational.
You enter:
✔ Cost Price
✔ Markup Percentage OR Desired Margin Percentage
The calculator shows:
✔ Selling Price
✔ Profit Amount
✔ Markup Percentage
✔ Margin Percentage
✔ Step-by-step calculation breakdown
This makes it perfect for:
• Business owners pricing products
• Students learning accounting or finance
• Entrepreneurs planning profits
• Retailers comparing pricing strategies
Step-By-Step Example Using Markup
Let’s say:
Cost Price = $80
Markup = 25%
Step 1: Convert percentage
25% = 0.25
Step 2: Calculate selling price
Selling Price = 80 × (1 + 0.25)
Selling Price = 80 × 1.25 = $100
Step 3: Calculate profit
Profit = 100 − 80 = $20
Step 4: Calculate margin
Margin = (20 ÷ 100) × 100 = 20%
Step-By-Step Example Using Margin
Cost Price = $80
Desired Margin = 20%
Step 1: Convert percentage
20% = 0.20
Step 2: Calculate selling price
Selling Price = 80 ÷ (1 − 0.20)
Selling Price = 80 ÷ 0.80 = $100
Step 3: Calculate profit
Profit = 100 − 80 = $20
Step 4: Calculate markup
Markup = (20 ÷ 80) × 100 = 25%
Common Pricing Mistakes This Calculator Helps Prevent
1. Confusing markup with margin
Many sellers think a 50% markup equals a 50% margin — which is incorrect.
2. Underpricing products
Not accounting properly for desired profit leads to losses.
3. Overpricing products
Setting too high margins may reduce sales.
The calculator gives accurate results every time.
Who Should Use This Tool?
This Markup & Margin Calculator is useful for:
• Small business owners
• Online sellers (Amazon, Etsy, Shopify, etc.)
• Retail store managers
• Accounting students
• Entrepreneurs and startups
• Finance professionals
Final Thoughts
Understanding the difference between markup and margin is critical for smart pricing decisions.
With our free Markup & Margin Calculator, you can:
✔ Instantly calculate selling price and profit
✔ Compare markup and margin easily
✔ Learn with step-by-step explanations
✔ Make better pricing decisions
Whether you’re running a business or studying finance, this tool simplifies pricing and boosts confidence.