Free Tool
Markup Calculator
Enter what an item costs and the markup you want. Get the selling price, profit per item, and true profit margin — instantly. Then work backward to price for any margin you're targeting.
Markup is your profit as a % of cost. Margin is that same profit as a % of the selling price — always the smaller number. Most people confuse the two and underprice.
Selling price
$150.00
Work backward: hit a target margin
Markup you need
66.7%
So sell at
$166.67
To keep 40.0% of every sale as profit on a $100.00 item, mark it up 66.7%.
Estimates for planning only. Belinda can help you set prices that actually cover overhead and taxes.
Markup vs. margin — the mistake that quietly kills profit
Markup and margin describe the same dollars of profit against two different bases, and mixing them up is the most common pricing error we see on the books of Oklahoma small businesses. Markup is profit as a percentage of your cost. Margin is profit as a percentage of your selling price. Because the selling price is always larger than the cost, your margin is always a smaller number than your markup.
Owners who "add 30%" thinking they'll keep 30% of the sale are actually keeping about 23%. Do that across a year of invoices and the shortfall is real money — money that should have covered payroll, overhead, and taxes.
| Markup | Equivalent margin |
|---|---|
| 15% | 13.0% |
| 25% | 20.0% |
| 50% | 33.3% |
| 100% | 50.0% |
| 200% | 66.7% |
The formulas
- Selling price = cost × (1 + markup ÷ 100)
- Profit = selling price − cost
- Margin % = profit ÷ selling price × 100
- Markup for a target margin = margin ÷ (100 − margin) × 100
Frequently asked questions
What is the difference between markup and margin?
Markup is your profit measured against your cost. Margin is that same profit measured against your selling price. A 50% markup is only a 33.3% margin. Pricing off markup while thinking in margin is the single most common reason small businesses undercharge.
How do I calculate selling price from markup?
Selling price = cost × (1 + markup ÷ 100). A $100 item with a 50% markup sells for $150, giving $50 profit and a 33.3% margin.
What markup do I need for a 40% margin?
Markup = margin ÷ (100 − margin) × 100. For a 40% margin you need a 66.7% markup. Use the "target margin" tool above to solve this for any margin you want.
Does this markup account for taxes and overhead?
No — this tool covers the markup on a single item. Real pricing also has to absorb overhead, payroll, and self-employment tax. That is exactly the gap Belinda helps Oklahoma small businesses close.
Not sure your prices actually cover everything?
Belinda helps Edmond & OKC business owners set prices that survive overhead, payroll, and taxes — and keeps the books clean so you always know your real numbers.
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