Enter your cost and selling price. Get markup %, gross margin %, profit amount, and a side-by-side comparison — the most commonly confused numbers in business pricing.
Know your cost and have a target? Calculate the exact selling price you need to hit your target markup percentage OR target margin percentage.
Know what you're charging and your target margin? Work backwards to find the maximum you can pay for the product and still hit your goal.
Compare markup and margin across your entire product range. Find your winners and your losers. Enter cost and selling price per product — all metrics calculated instantly.
Find exactly how many units you need to sell before you start making profit. Enter your fixed costs (rent, salaries, software) and per-unit costs and selling price.
Enter either a markup % or a margin % and instantly see the equivalent. The #1 source of pricing confusion — solved in one tool.
| Markup % | Gross Margin % | Markup % | Gross Margin % |
|---|---|---|---|
| 10% | 9.1% | 100% (Keystone) | 50.0% |
| 20% | 16.7% | 150% | 60.0% |
| 25% | 20.0% | 200% | 66.7% |
| 33% | 24.8% | 300% | 75.0% |
| 50% | 33.3% | 400% | 80.0% |
| 66.7% | 40.0% | 500% | 83.3% |
| 75% | 42.9% | 1000% | 90.9% |
Click any row to load that industry's typical markup into the calculator. Rates are typical ranges — actual markup varies by product uniqueness, competition, and business model.
| Industry | Typical Markup % | Gross Margin % | Notes |
|---|
Markup vs Margin — Formulas, Differences & Pricing Strategy
Markup and margin are the two most commonly confused numbers in business. They describe the same profit from different angles — but confusing them can cost you thousands. Here's everything you need to know.
Markup Formula
Markup % = ((Selling Price − Cost) ÷ Cost) × 100
Markup measures profit as a percentage of COST. It answers: "how much did I add on top of what I paid?"
Example: cost $60, sell $100. Markup = ($40 ÷ $60) × 100 = 66.7%.
Gross Margin Formula
Margin % = ((Selling Price − Cost) ÷ Selling Price) × 100
Margin measures profit as a percentage of REVENUE. It answers: "what fraction of every dollar collected is profit?"
Same example: cost $60, sell $100. Margin = ($40 ÷ $100) × 100 = 40%.
The Critical Rule: Markup Is Always Higher Than Margin
For the same product and the same profit, markup % always exceeds margin %. This is because markup divides by the smaller number (cost) while margin divides by the larger number (price). The most expensive mistake in pricing: a buyer says "we need 50% margins" and a seller applies 50% markup — they just gave away 16.7 percentage points of margin. The 100% markup keystone rule produces exactly 50% margin — useful to memorize.
How to Find Selling Price from Target Margin
Formula: Price = Cost ÷ (1 − Margin%/100)
To achieve 40% margin on a $60 cost: Price = $60 ÷ 0.60 = $100.
To achieve 30% margin: Price = $60 ÷ 0.70 = $85.71.
How Discounts Destroy Margins
Discounts reduce revenue without reducing cost, so their impact on margin is disproportionate. At 20% margin, a 10% discount cuts your profit in half. At 5% margin, a 3% discount wipes out 60% of profit on that sale. Before running a promotion, always calculate: Discount Amount ÷ Profit per Unit = % of profit surrendered.