Convert between cost, markup, selling price and margin — both directions.
Result
How to use this tool
Cost plus markup to find price, or cost plus price to find markup.
What each unit costs you to buy or make.
The percentage added, or the price you actually charge.
The same sale gives different percentages — check which one your business targets.
Formula & worked example
A cost of $80 with a 25% markup gives a selling price of $100 and profit of $20 per unit — but the margin on price is only 20%, because margin divides by the selling price, not the cost.
Limitations — read this before you rely on it
Per-unit arithmetic only: it excludes volume discounts, taxes, shipping, returns, overhead allocation and payment fees, which all change realised margin. Use it for pricing decisions, not as a substitute for full cost accounting.
Frequently asked questions
Markup divides profit by cost; margin divides profit by selling price. A 25% markup equals a 20% margin — confusing them is a classic pricing error.
Margin = markup ÷ (1 + markup). So 50% markup → 33.3% margin, and 100% markup → 50% margin.
Markup = margin ÷ (1 − margin). A 20% margin target needs a 25% markup.
Margin targets match how profit appears in accounts, so many businesses set margin goals and convert to markup for price lists.
A discount after markup cuts margin faster than markup: 25% markup then 20% off leaves almost no margin — check the price-mode calculation.