Margin and markup calculator

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How the answer is worked out

Profit = price minus cost. Margin in percent = profit divided by price, times 100. Markup in percent = profit divided by cost, times 100.

From a margin: price = cost divided by (1 minus the margin as a fraction). From a markup: price = cost times (1 plus the markup as a fraction). From a price: it is used as typed.

The same figures convert directly: margin = markup divided by (100 plus markup), times 100, and markup = margin divided by (100 minus margin), times 100.

What the sources say

University of Vermont Extension's sheet on mark-up and margins writes the mark-up on cost as cost plus cost times the mark-up percentage. It treats margin as a fixed percentage based on the final sale price, with the price equal to cost divided by (1 minus the margin percentage).

Penn State Extension's page on markup and profit says that adding 30 percent to a cost does not make a 30 percent profit. It works a 30 percent markup out as 23 percent gross profit, because profit is divided by the sale price, and defines gross profit margin as gross profit divided by sales price.

On the same topic, BDC's seven steps to setting a price expresses markup as a percentage of the cost of goods sold or cost of sales, and gross margin as gross profit as a percentage of revenues. It defines gross profit as total revenue minus cost of goods sold, and says that cost leaves out costs associated with marketing, selling or administration. This page counts whatever cost is typed.

The page holds no suggested margin or markup. The figures come from what is typed.

Arithmetic only. The answer is only as good as the numbers entered. It is not a plan or a safe working load for any job.

Margin and markup calculator

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How the answer is worked out

What the sources say

Sources