Markup is profit as a percentage of the cost. Subtract the cost from the price, divide by the cost and multiply by 100: a cost of 60 and a price of 90 give a 50% markup. To set a price from a markup, multiply the cost by 1 plus the markup: 60 × 1.5 = 90.
Formulas
markup % = (price − cost) ÷ cost × 100price = cost × (1 + markup % ÷ 100) Examples
- Cost 40, price 52: markup 30%, margin 23.08%.
- Cost 18 with a 150% markup: 18 × 2.5 = 45.
Common mistakes
- Quoting markup as margin: a 100% markup is a 50% margin.
- Applying the markup to the selling price instead of the cost.
In Excel and Google Sheets
- Cost in A2, price in B2 (format as %)
=(B2-A2)/A2 - Price with the markup in C2
=A2*(1+C2)
FAQ
How do I convert markup to margin?
margin = markup ÷ (1 + markup). A 50% markup is 0.5 ÷ 1.5 = 33.33% margin.
How do I convert margin to markup?
markup = margin ÷ (1 − margin). A 40% margin is 0.4 ÷ 0.6 = 66.67% markup.
Can markup be over 100%?
Yes. Selling at three times the cost is a 200% markup.
How we calculate: exact decimal math (no rounding errors), you choose the decimal places, and your numbers never leave your browser. Methodology →
Updated October 2026