Markup Calculator
Markup calculator
Compare markup vs margin or reverse-solve target price/cost.
InputsForm3 fieldsLive
Quick scenarios
Markup
50%
Current pair. $30.00 profit • 33.3333% margin.
Live update
Markup
50%
Margin
33.3333%
Profit / unit
$30.00
Spread (pts)
16.6667
Advanced options
- Denominator check: cost $60.00 vs revenue $90.00.
Denominator comparison
Markup denominator = cost; margin denominator = revenue.
| Metric | Denominator | Value |
|---|---|---|
| Markup | Cost $60.00 | 50% |
| Margin | Revenue $90.00 | 33.3333% |
Markup vs margin comparison
Bars show relative size; labels show exact percentages.
Markup %50%
Margin %33.3333%
Markup basics
Same profit, different denominator.
- Markup = (Selling price − Cost) ÷ Cost × 100.
- Margin = (Selling price − Cost) ÷ Selling price × 100.
- Markup denominator is cost; margin denominator is revenue.
- Reverse-solve modes exclude taxes and payment fees.
Flow
- Choose Analyze to evaluate current cost + selling price, or switch to a reverse-solve mode.
- For reverse solve, enter target markup and solve either required selling price or allowed cost.
- Use Convert margin to markup when a margin target is provided by finance but pricing is managed in markup terms.
- Review the comparison chart/table to confirm why markup and margin differ for the same profit.
Example
Worked example: markup on a retail item
- 1 Cost = 60
- 2 Selling price = 90
- 3 Markup = ((90 - 60) / 60) × 100 = 50%
The item has a 50% markup on cost.
How
- Choose Analyze to evaluate current cost + selling price, or switch to a reverse-solve mode.
- For reverse solve, enter target markup and solve either required selling price or allowed cost.
- Use Convert margin to markup when a margin target is provided by finance but pricing is managed in markup terms.
- Review the comparison chart/table to confirm why markup and margin differ for the same profit.
Avoid
- Confusing markup with margin, which use different denominators.
- Applying a margin target directly as markup without conversion.
- Reverse-solving with impossible assumptions such as target markup at or below -100%.
- Using total order value instead of per-unit cost and price.
- Entering zero cost, which makes markup undefined.
FAQ
Is markup the same as gross margin?
No. Markup divides profit by cost, while margin divides profit by revenue.
Can I solve price from a target markup?
Yes. Use the reverse-solve mode to compute either required selling price or allowed cost from a markup target.
Can markup be negative?
Yes. Negative markup means selling below cost.
Why use markup analysis?
It helps standardize pricing and compare profitability across products.
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