THE NUMORIX GUIDE
How to use the Markup Calculator
Last reviewed September 14, 2026
What this calculator does
In Cost + Markup mode, profit = cost x markup/100 and selling price = cost + profit; margin = profit / selling price x 100.
Formula and method
In Cost + Markup mode, profit = cost x markup/100 and selling price = cost + profit; margin = profit / selling price x 100. In Price + Margin mode, profit = selling price x margin/100, cost = selling price - profit, and markup = profit / cost x 100. The two percentages use different denominators.
Variables and inputs
Choose Cost + Markup and enter Cost and Markup percentage, or choose Price + Margin and enter Selling Price and Margin percentage. Dollar fields are per item or transaction and rates are percentages. The UI disallows a margin of 100% or more in the reverse mode.
Worked example
With cost $50 and a 40% markup, profit = 50 x 0.40 = $20 and selling price = $70. The resulting margin is 20/70 x 100 = 28.6%. Conversely, a $100 selling price with a 30% margin gives $30 profit, $70 cost, and markup = 30/70 x 100 = 42.9%.
How to interpret the result
Markup is profit measured against cost; margin is profit measured against selling price. A target margin therefore requires a larger percentage markup than the same-number markup would produce, and neither result says whether customers will accept the price.
Common mistakes to avoid
Do not use markup and margin percentages interchangeably. Enter 40 for 40%, not 0.40, and check which mode is active before reading the result. Include the costs that belong in the pricing basis instead of assuming product purchase cost is the full cost of serving the sale.
Assumptions and limitations
The engine does not include taxes, shipping, discounts, overhead allocation, payment fees, returns, demand, competition, or changing unit costs. It accepts a markup percentage without a visible upper bound in cost mode, and its simple formulas do not establish a profitable or legally compliant price.