What is a 50% markup?

A 50% markup means the selling price is the cost plus half of the cost again. On a $100 cost, a 50% markup gives a selling price of $150, with $50 of profit per unit. Markup is always measured against cost.

Is 50% markup the same as 50% margin?

No. A 50% markup on a $100 cost gives a $150 selling price, which has a margin of about 33.3%. Margin divides by selling price; markup divides by cost, so markup is always the larger number for the same sale.

Can markup exceed 100%?

Yes. A 100% markup doubles the cost and a 200% markup triples it. There is no upper limit, though very high markups usually mean a premium product or a low-volume pricing strategy. Margin, by contrast, can never exceed 100%.

How do I convert markup to margin?

Margin = Markup ÷ (1 + Markup). For example, a 60% markup converts to a margin of 60 ÷ 160 = 37.5%. The reverse is Markup = Margin ÷ (1 − Margin), so a 40% margin equals a 66.67% markup.

What costs should be included?

Include everything it costs you to put one unit in a customer's hands: the product cost, shipping and freight, duties, packaging, and payment or marketplace fees. Excluding these systematically understates the price you need to charge.

Markup Calculator

Use this markup calculator to calculate markup, calculate a selling price from cost and a target markup, compare markup and margin, and find profit per unit. Enter your cost and either a selling price or a target markup percentage — the tool shows both the markup and the resulting margin so the two figures are never confused.

Last reviewed: 2026-07-01

Results

Enter your figures above and select Calculate. Results appear here with clear labels — never colour alone.

What Is Markup?

Markup is the amount added to a cost to arrive at a selling price, expressed as a percentage of that cost. It is the natural way to think about pricing when you buy or produce something at a known unit cost and need a price to sell it at. Wholesale, retail and trade pricing conversations are usually conducted in markup terms.

Because markup is measured against cost while margin is measured against selling price, the two always differ, and the gap widens as the number grows. Quoting one when your counterpart means the other is a genuinely expensive misunderstanding.

How to Calculate Markup

Markup (%) = (Selling Price − Cost) ÷ Cost × 100
Profit = Selling Price − Cost
Margin (%) = Profit ÷ Selling Price × 100

To reverse the calculation from a known price: Markup = ((Price − Cost) ÷ Cost) × 100. Because the denominator is cost, not price, markup is always larger than margin for the same sale.

Markup Calculator Example

A retailer buys a product for $50 and sells it for $80.

Profit = 80 − 50 = 30
Markup = (30 ÷ 50) × 100 = 60.00%
Margin = (30 ÷ 80) × 100 = 37.50%

The 60% markup produces a margin of 37.5% — a useful reminder that the two figures describe the same sale from different angles.

How to Calculate Selling Price From Markup

When you know your cost and a target markup, the selling price follows directly.

Selling Price = Cost × (1 + Markup ÷ 100)
Cost = $100, Markup = 25%
Selling Price = $100 × 1.25 = $125

This calculator has two modes. Use From Cost & Price when you know your cost and selling price and want the resulting markup and margin. Use From Cost & Markup when you know your cost and a target markup and want the selling price that achieves it. Enter the full unit cost, including shipping and duties if you pay them.

Markup vs Profit Margin

Markup and margin are not interchangeable. Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. For the same sale, markup is always the larger number, and the gap widens as the percentage grows.

Cost: $50 Selling Price: $80 Profit: $30
Markup (on cost) = 30 ÷ 50 × 100 = 60.00%
Margin (on price) = 30 ÷ 80 × 100 = 37.50%

Check the resulting margin, not just the price. If the margin looks thin once payment fees, returns and overheads are considered, the markup is too low even if the price feels competitive. Use the profit margin calculator to check the same figures from the revenue side, and the Amazon FBA calculator when marketplace fees also apply.

Common Markup Mistakes

Confusing markup with margin. A 50% markup leaves a 33% margin, not 50% — they use different denominators.
Ignoring shipping or fulfillment costs. Freight, duties and handling quietly erode every unit of profit if left out of cost.
Ignoring payment fees. Processor and marketplace commissions are real costs of the sale.
Using revenue instead of cost. Markup divides by cost; dividing by selling price produces margin instead.
Setting selling price without considering overhead. A price that covers cost and a target markup may still not cover fixed costs — confirm with the break-even calculator.

Can Markup Be More Than 100%?

Yes. Markup is measured against cost, so it can be any positive number — there is no upper limit. A 100% markup doubles the cost; a 200% markup triples it.

Cost = $20, Selling Price = $50
Markup = (50 − 20) ÷ 20 × 100 = 150%

A 150% markup is perfectly valid and common in software, jewellery and professional services, where the selling price is several times the cost. Margin, by contrast, can never exceed 100%, because profit can never be larger than the selling price it is measured against.

Frequently asked questions

Profit Margin Calculator
Find gross, operating or net margin from revenue and cost figures.
Break-Even Calculator
See how many units you must sell to cover fixed and variable costs.
Amazon FBA Calculator
Estimate Amazon FBA profit, fees, margin, ROI, break-even price and ad costs.

Related guides

Markup vs Margin: Formula, Examples & Differences

Disclaimer

Results from this calculator are estimates for general information only and are not financial, accounting, tax, investment or legal advice. Verify important figures with a qualified professional. Read our full disclaimer.

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