Markup & Margin Calculator

Calculation method. Choose markup to add a percentage to cost, or gross margin to set profit as a percentage of the selling price. These percentages use different bases, so the same percentage produces different prices.

Cost (USD). Enter the total cost you want this price to recover. Include the materials, labor, subcontractors or other costs that belong in your pricing basis. The calculator cannot add overhead, tax or omitted costs unless they are already included here.

Markup on cost (%). In markup mode, this percentage is added to the entered cost. In margin mode, it is the share of the selling price remaining after that cost is covered, and must be below 100%. This remaining amount is gross profit on the entered cost basis, not automatically net business profit.

Selling price covers the entered cost and the calculated gross profit. Markup compares that profit with cost; margin compares it with selling price. Use the displayed percentages to check which basis you intend. Profit here excludes expenses you left out of the cost figure, so it should not be mistaken for net business profit.

Markup mode: price = cost × (1 + markup ÷ 100).
Margin mode: price = cost ÷ (1 − target margin ÷ 100).
Gross profit = price − cost.
Markup % = gross profit ÷ cost × 100.
Gross margin % = gross profit ÷ price × 100.

Worked example: A $1,000 cost with 25% markup sells for $1,250, yielding $250 gross profit and 20% margin. A 25% target margin instead needs a price of approximately $1,333.33 and a markup of approximately 33.33%.

Arithmetic pricing aid only. Gross profit here is selling price minus the entered cost; it is not net profit. Taxes, overhead allocation, financing, and other costs are not added automatically.