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Markup calculator
Selling price = cost x (1 + markup). A part that costs $40 with a 50% markup sells for $60, which is a 33.3% margin. Enter the cost and markup to get the price, or the cost and price to get the markup, and the calculator shows the matching margin every time.
Updated October 12, 2026
The formulas
| You want | Formula |
|---|---|
| Selling price | Cost x (1 + markup) |
| Markup | (Price - cost) / cost |
| Cost behind a price | Price / (1 + markup) |
| Margin from markup | Markup / (1 + markup) |
| Markup from margin | Margin / (1 - margin) |
Markup is profit as a share of cost (the University of Maine Extension’s markup on cost). Margin is profit as a share of price.
Markup to margin
| Markup | Equals margin of | Price for $1 of cost |
|---|---|---|
| 10% | 9.1% | $1.10 |
| 20% | 16.7% | $1.20 |
| 25% | 20% | $1.25 |
| 30% | 23.1% | $1.30 |
| 40% | 28.6% | $1.40 |
| 50% | 33.3% | $1.50 |
| 60% | 37.5% | $1.60 |
| 75% | 42.9% | $1.75 |
| 100% | 50% | $2.00 |
| 150% | 60% | $2.50 |
| 200% | 66.7% | $3.00 |
A 100% markup doubles the cost and is a 50% margin.
Why many distributors price on margin
Markup on cost is quick to apply at the counter, but the University of Maine bulletin advises managing on margin because it tells you how much of each sales dollar is left to pay expenses and profit. Its example: an item marked up 50% on cost sells for $1.50; cut that price 40% at the end of the season and it sells for 90 cents, below its $1.00 cost. Thinking in margin makes that visible before the price tag goes out.
If your price book is set as cost plus a markup, keep the table above handy, or use the gross profit calculator to work from a target margin instead.
Pricing a whole cost list
Open Price a whole cost list under the calculator, paste the item and cost columns from your spreadsheet, and pick one markup or margin. Each price is rounded to the cent, and the list copies back into a spreadsheet or downloads as a CSV.
Common markup mistakes
Taking a margin target as a markup. A 30% markup is a 23.1% margin, not 30%.
Marking up the wrong cost. Use the landed cost: the price paid plus inbound freight, duty and handling.
Discounting off the marked-up price as if it were margin. 25% off a price marked up 33% on cost sells below cost.
Rounding before the markup. Mark up the exact cost, then round the selling price.
WHERE MORSA FITS
Quotes are only worth the ones that turn into orders.
Morsa writes quotes from your price book and your target margins, sends them, and follows up until the customer orders or says no. It works in email, Teams, WhatsApp or whatever you already run on, and it reads prices and stock from your ERP.
