Markup and markdown calculator: find selling price, markup %, discount percentage, and profit margin from cost and price, with a markup-to-margin table.
Use this markup calculator when you need to move between cost of goods sold (COGS), selling price, and markup amount without doing the pricing math manually. It is useful for retail pricing, wholesale pricing, quoting products, and checking whether the sale price you plan to charge leaves enough room for both markup and margin. The same three fields also work in reverse to find a markdown or discount percentage — see the dedicated section below.
The main intent behind a markup calculator is usually practical: what should I charge, how much profit is built into this price, or why markup and margin are not the same percentage. This calculator addresses that directly by showing the fixed markup amount, markup percentage, and profit margin together from the same inputs.
Markup is based on cost, while profit margin is based on selling price. That difference matters in pricing decisions, because the same product can show one markup percentage and a different margin percentage. Seeing both side by side makes it easier to price consistently and compare products more accurately. For a calculator focused only on margin, see the profit margin calculator.
Markup Formula and Example
The core relationships are Markup = Selling price − Cost, Markup % = Markup ÷ Cost × 100, and Profit margin % = Markup ÷ Selling price × 100. For example, with a cost of $1.69 and a selling price of $2.00, the markup is $0.31, which is an 18.34% markup on cost and a 15.5% profit margin on the selling price — two different percentages from the same $0.31 of profit.
How to Calculate a Markdown or Discount Percentage
This calculator can also work as a markdown calculator. Enter your original list price in the cost field and your reduced sale price in the selling price field: the fixed amount becomes the markdown amount, and the percentage result becomes the markdown percentage (shown as a negative value, since the price went down instead of up). For example, an item with an original price of $50 marked down to $40 has a markdown amount of $10 and a markdown percentage of 20% off the original price — calculated the same way as markup, just starting from a higher price and moving down. For a calculator built specifically for discounts, with labels for original price and sale price instead of cost and selling price, see the dedicated markdown calculator.
Markup to Margin Conversion Table
| Markup % | Equivalent margin % |
|---|
| 10% | 9.09% |
| 15% | 13.04% |
| 20% | 16.67% |
| 25% | 20.00% |
| 30% | 23.08% |
| 33.33% | 25.00% |
| 40% | 28.57% |
| 50% | 33.33% |
| 60% | 37.50% |
| 66.67% | 40.00% |
| 75% | 42.86% |
| 100% | 50.00% |
To convert markup to margin: margin = markup ÷ (1 + markup). To convert margin to markup: markup = margin ÷ (1 − margin), using each rate as a decimal. Use the calculator above for any rate not listed here.
Retail Sales Calculator Formula
Result
Mark-up/ Markdown Percentage (MU%) | 18.34% |
|---|
Profit Margin (PM) | 15.50% |
|---|
Markup Calculator FAQ
What does a markup calculator do?
A markup calculator helps you move between cost, selling price, and markup. If you know any two of those values, you can calculate the third and also see the corresponding markup percentage and profit margin.
What is the difference between markup and margin?
Markup is profit divided by cost, while margin is profit divided by selling price. Because they use different denominators, the percentages are not the same. A 25% markup does not mean a 25% profit margin.
How do I calculate selling price from cost and markup?
To calculate selling price, add the markup amount to cost: selling price = cost + markup. If you are starting with a markup percentage, first convert that percentage into an amount based on cost.
Why is markup percentage higher than profit margin?
Markup percentage is measured against cost, while profit margin is measured against selling price. Since selling price is larger than cost after markup is added, the margin percentage is lower than the markup percentage for the same product.
When should I use markup instead of margin?
Use markup when you price from cost upward, which is common in retail, wholesale, purchasing, and quoting. Use margin when you want to evaluate profitability relative to revenue or compare business performance across products and periods.
What formula does this markup calculator use?
This calculator uses the common pricing relationships markup = selling price - cost, markup % = markup / cost × 100, and profit margin = markup / selling price × 100. Those formulas are the standard way to connect markup, price, and margin.
Can I use this as a markdown calculator?
Yes. Enter the original list price as the cost and the reduced sale price as the selling price. The fixed result becomes the markdown amount and the percentage becomes the markdown percentage, shown as a negative value since the price decreased.
How do you calculate markdown percentage?
Markdown percentage is (original price − sale price) ÷ original price × 100. For example, a $50 item marked down to $40 has a $10 markdown, which is a 20% markdown off the original price.
How do I convert a markup percentage to a margin percentage?
Use margin = markup ÷ (1 + markup), with the markup as a decimal. For example, a 25% markup converts to a 20% margin (0.25 ÷ 1.25 = 0.20). To go the other way, use markup = margin ÷ (1 − margin).
