Markup Calculator.
A 50 percent markup on a $40 cost gives a $60 selling price, a $20 profit and a 33.3 percent margin. Enter your cost and either a markup, a selling price or a target margin, and this calculator shows the other three figures instantly.
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. Prices are before any sales tax or VAT. Nothing is sent to a server.
Markup Calculator is a free online tool from Neweb (neweb.ai) for small businesses, with no sign-up. A 50 percent markup on a $40 cost gives a $60 selling price, a $20 profit and a 33.3 percent margin. Enter your cost and either a markup, a selling price or a target margin, and this calculator shows the other three figures instantly.
| Cost | Free, no account, no watermark |
|---|---|
| Built for | Boutiques and other small businesses |
| Made by | Neweb, the AI website builder and online presence manager (free plan; paid plans from $9/month billed yearly) |
Facts checked October 2026.
What you'll get.
A real example of what this tool produces. Run it above with your own inputs.
Markup is how much you add to what something costs you to arrive at the price you charge, expressed as a percentage of the cost. It is the way most retailers, wholesalers, makers and trades price products and materials. Margin is the same profit seen from the other side, as a percentage of the selling price. The two are easy to confuse, and confusing them is one of the most common pricing mistakes in small business: a 50 percent markup is only a 33 percent margin.
This calculator works in three directions. Give it a cost and a markup to get a price; a cost and a price to see the markup and margin you are actually making; or a cost and a target margin to find the price that delivers it. Add a number of units to see revenue and profit for a batch. It works in USD, GBP, EUR, CAD, AUD, INR and ten other currencies.
It is free and runs in your browser, from Neweb, the AI website builder for small businesses (free plan, paid plans from $9/month billed yearly, $19 month-to-month). Once your prices are set, putting them on your website with clear product or service pages is what Neweb builds.
How to use the markup calculator
Choose what you know: cost and markup, cost and selling price, or cost and target margin.
Pick your currency and enter the cost per unit. Use the full landed cost: purchase price plus shipping, duties and packaging.
Enter the markup percentage, the selling price or the margin you want, depending on the mode.
Optionally enter a number of units to see revenue and profit for a batch or a month.
Click Calculate. The panel shows the price, profit, markup and margin together so you can quote with confidence.
Why this matters for your business
Markup and margin are not the same number. If you want to keep 30 percent of every sale, a 30 percent markup will not get you there; you need about 43 percent. Many small businesses discover the gap only when the accounts come back.
Costs move, prices often do not. When a supplier raises prices by 8 percent and your price stays put, your markup shrinks quietly. Re-running the numbers each time a cost changes protects your profit.
Consistent markups simplify pricing. A standard markup by product category, adjusted for competition, makes it quick to price new stock and easy to explain to staff.
Tips for better results
- Use landed cost, including freight, import duties, card fees and packaging, not just the supplier invoice price.
- Quick conversions: a 25% markup is a 20% margin, 50% is 33.3%, 100% is 50%, and 200% is 66.7%.
- Price before tax. Add VAT, GST or sales tax afterwards with the VAT calculator or sales tax calculator.
- Check that your price after a planned discount still clears your cost; the discount calculator shows the sale price.
- Service businesses should price labour from an hourly rate rather than a markup; the hourly rate calculator helps.
- Review markups by category at least twice a year and whenever a major supplier changes prices.
Example
A real-world walkthrough
A gift shop in Melbourne buys handmade candles at A$14 each, plus A$2 per candle for shipping and packaging, so the landed cost is A$16. The owner wants to keep a 45 percent margin. In "cost and target margin" mode, the calculator returns a price of A$29.09, a markup of 81.8 percent and a profit of A$13.09 per candle. She rounds the shelf price to A$29.95.
Checking her old price of A$24 in "cost and selling price" mode shows a 50 percent markup but only a 33.3 percent margin, which explains why the candle line looked busy but barely profitable.
Frequently asked questions
What is the difference between markup and margin?
Both measure the same profit, against a different base. Markup is profit divided by cost; margin is profit divided by selling price. A product that costs $40 and sells for $60 has a $20 profit, which is a 50 percent markup ($20 ÷ $40) and a 33.3 percent margin ($20 ÷ $60). Markup is always the larger number for a profitable sale. The calculator shows both so you never mix them up.
How do I calculate a selling price from a markup?
Multiply the cost by one plus the markup as a decimal. For a 60 percent markup on a $25 cost: $25 × 1.60 = $40. To hit a target margin instead, divide the cost by one minus the margin as a decimal: for a 40 percent margin, $25 ÷ 0.60 = $41.67. The calculator does both, plus the reverse calculation from a price you already charge.
What is a good markup percentage?
It depends on the industry, volume and competition. Grocery and fuel run on low markups and high volume; clothing, gifts, jewellery and restaurant drinks commonly use much higher ones, sometimes 100 percent or more, because stock moves slower and overheads are high. Rather than copying a rule of thumb, start from the margin you need to cover overheads and profit, convert it to a markup, and compare with what competitors charge.
Is a 100 percent markup the same as a 100 percent margin?
No. A 100 percent markup doubles the cost: buy at $10, sell at $20. That is a 50 percent margin. A 100 percent margin is impossible, because it would mean the item cost nothing. That is why the target margin mode only accepts values below 100.
Should markup include VAT or sales tax?
No. Calculate markup on the net cost and the net selling price, both excluding VAT, GST or sales tax, because the tax is collected for the government and is not your income. Add the tax on top of the selling price afterwards. If you are not registered for VAT or GST, the tax you paid on purchases is part of your cost, so include it in the cost figure.
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