Markup calculator
Money & financeHow big is your markup?
See the markup on cost, with the margin and profit beside it.
What you enter stays on your device while you use this tool. Opening a shared link sends the settings in its address to HowToolbox to prepare the page.
More options
Margin
33.3%
Profit $25.00 per sale · markup 50%
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See the markup on cost, with the margin and profit beside it.
How to use
- Enter what one unit costs you, without VAT.
- Enter the selling price, or choose Find: Price and enter the margin you want. If the price includes VAT, enter its rate under More options so it is taken out first.
- Read the margin, with the markup and the profit per sale below it. Copy the link to share the calculation.
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How it works
Margin and markup both compare your profit with a price, but with different prices. Margin divides the profit by the selling price, markup divides it by the cost. That is why the same sale always has a bigger markup than margin.
With a cost C and a selling price P without VAT, the profit is P − C, the margin is (P − C) ÷ P × 100 and the markup is (P − C) ÷ C × 100. A price that includes VAT is first divided by (1 + VAT rate), because VAT goes to the state, not to you. The definitions follow OpenStax, Contemporary Mathematics, section 6.2.
This is the gross margin of one unit. Overheads, discounts, shipping and income tax are not included. A negative result means you sell at a loss.
Worked example
What is the margin on a €100.00 sale with €60.00 cost and no VAT?
- €100.00 − €60.00 = €40.00.
- €40.00 ÷ €100.00 × 100 = 40%.
40%
Frequently asked questions
How is markup calculated?
Subtract the cost from the selling price without VAT and divide by the cost. Selling a €60 item for €90 is a €30 profit and a 50% markup.
What price gives a 100% markup?
Double the cost. A 100% markup means the profit equals the cost, which is a 50% margin.
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