Markup Calculator
Work out markup, selling price and the margin it really gives you, from any two numbers. See the price with GST and your break-even, then paste your whole price list and reprice every product to your target markup. Free, no signup, nothing leaves your browser.
Supplier prices went up. Did your price list?
Most margin leaks are price lists that did not move when costs did. A free Make scenario can watch your supplier price sheet or purchase bills, recalculate every product, and email you the items that have dropped below your target margin, every week.
See how small businesses automate this Start free on MakeAffiliate link: if you sign up to Make through it, The Gantry may earn a commission at no extra cost to you. Pricing hundreds of products from spreadsheets, with costs in one file and prices in another? Book a free 20-minute systems review.
How to calculate markup
Markup is profit as a share of the cost: markup = (price − cost) ÷ cost × 100. Buy at S$40 and sell at S$60: the profit is S$20, so the markup is 20 ÷ 40 = 50%. To set a price from a markup, price = cost × (1 + markup): S$40 with a 50% markup is S$60.
Markup and margin are not the same number
Both use the same profit but divide it by different things: markup by the cost, margin by the price. So the markup is always the bigger number. A 50% markup is a 33.3% margin, and a 100% markup (often called keystone pricing) is a 50% margin. The mix-up is expensive: if your target is a 30% margin and you add 30% to cost, you get 23.1%.
Markup to margin conversion
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20.00% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 60% | 37.50% |
| 75% | 42.86% |
| 100% | 50.00% |
| 150% | 60.00% |
| 200% | 66.67% |
When markup pricing goes wrong
Cost-plus pricing is quick and works while costs are stable. It fails quietly in two ways. First, supplier prices rise and the price list does not follow. Second, the "cost" leaves out freight, duty, packaging or card fees. Use the landed cost (what you paid plus everything it took to get the item to you), and re-run your list whenever a supplier changes prices: paste it into "Price a whole list" above with your target markup.
Questions
What is the formula for markup? Markup = (selling price − cost) ÷ cost × 100. Selling price = cost × (1 + markup).
How do I convert markup to margin? Margin = markup ÷ (1 + markup). For example, a 25% markup is a 20% margin.
What markup gives a 50% margin? A 100% markup: you sell at double the cost, so half of the price is profit.
Should markup be calculated with or without GST? Without. Calculate markup on costs and prices excluding GST, then add GST to the selling price. The calculator shows the GST-inclusive price for you.
More free tools that do the work: invoice and quotation generators, the timesheet calculator and the overdue invoice reminder writer.
