Markup & Margin Calculator
From cost to sale price with actual margin.
Sale price
$70.00
Profit
$20.00
Actual margin (%)
28.57%
How it works
Markup and profit margin are two sides of the same coin — and confusing them is a leading cause of losses in small businesses. This calculator applies a markup percentage on the product cost and shows you the resulting sale price, profit, and actual margin. Ideal for resellers, freelancers, retailers, and anyone who needs to price products or services.
Formulas:
Price = Cost × (1 + Markup%) Profit = Price − Cost Margin (%) = Profit / Price × 100
The distinction matters: markup is applied on cost, while margin is calculated on sale price. A 100% markup (cost $50 → price $100) corresponds to a 50% margin ($50 profit on a $100 sale). A 50% markup yields only 33.3% margin. The higher the markup, the bigger the gap between the two numbers.
Typical retail markups vary by category: clothing and accessories (100–250%), electronics (15–30%), grocery (10–25%), restaurants (200–400% on ingredient cost). Remember to include all variable costs: shipping, sales tax, payment processing fees, and commissions. Otherwise, the headline markup becomes phantom profit.
Practical examples
Cost $50, 40% markup
Price $70.00 · Profit $20.00 · Margin 28.57%
Cost $100, 100% markup
Price $200.00 · Profit $100.00 · Margin 50.00%
Cost $25, 200% markup
Price $75.00 · Profit $50.00 · Margin 66.67%
Cost $500 (restaurant ingredients), 300% markup
Price $2,000.00 · Profit $1,500.00 · Margin 75.00%
Frequently asked questions
What's the practical difference between markup and margin?
Markup is the percentage added to cost. Margin is the percentage of profit on the final price. Sellers usually think in markup; accountants and investors think in margin. Always check which number you're looking at.
How do I price a service?
Add up your hourly cost (including taxes, prorated fixed expenses, and non-billable time) and apply your desired markup. Freelancers often use 50–100% markup to cover non-billable time like studying, prospecting, and admin.
Should I include taxes in the cost?
Yes — all variable sales taxes and any input taxes for resale should be included. Otherwise, the displayed profit is phantom.
Is a 100% markup the same as doubling the price?
Yes. 100% markup on $50 gives $100. But the margin is 50%, not 100% — this is the most common pricing mistake.
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⚠️ Disclaimer
This calculator is for educational and informational purposes only. Results are estimates based on public formulas and may contain inaccuracies or be outdated. We are not accountants, lawyers, doctors, or financial advisors — for any important decision (tax filings, contracts, diagnoses, financial planning), always consult a qualified professional. calculadora.work assumes no liability for decisions made based on the content of this site.