How the Markup Calculator works
1. Cost + Markup % → Price & Profit
- price = cost × (1 + markup%/100)
- profit = price − cost
- margin % = profit ÷ price × 100
2. Cost + Price → Markup %, Margin, Profit
- profit = price − cost
- markup % = profit ÷ cost × 100
- margin % = profit ÷ price × 100
3. Price + Markup % → Cost, Margin, Profit
- cost = price ÷ (1 + markup%/100)
- profit = price − cost
- margin % = profit ÷ price × 100
- markup $ = price − cost
- markup % = (price − cost) ÷ cost × 100
- margin % = (price − cost) ÷ price × 100
- margin % = markup % ÷ (100 + markup %) × 100
- markup % = margin % ÷ (100 − margin %) × 100
- Inputs are pre-tax and pre-discount unless you explicitly add those into cost or subtract from price.
- Overhead can be folded into cost for truer margins.
- Rounding to 2 decimals for currency; percentages to 1–2 decimals.
- Example (matches screenshot logic)
- cost = 100, markup % = 20 → price = 120, profit = 20, margin % ≈ 16.67, markup % = 20.
- cost ≤ 0: markup % is undefined; the tool guards against divide-by-zero.
- negative profit (price < cost): markup % becomes negative; margin % negative—flag as loss.
- If you price to a target margin, convert to markup first to avoid the classic margin/markup mix-up.
- Re-run with fees (payment, shipping, returns) added to cost to see all-in margin.
- Pair with a break-even or elasticity check before final pricing.