Markup Calculator: measuring notes and method
Check the equivalent margin
A 25% markup produces a 20% margin: 25 ÷ 125 × 100 = 20. The percentages differ because they use different denominators.
Avoid applying both adjustments
Markup and target margin are alternative ways to set a selling price. Do not run the marked-up price through the margin calculator again unless you deliberately intend a second increase.
CHECK A PRACTICAL EXAMPLE
Different markups, different margins
Both options use a cost of 1,000 currency units.
20% markup
- Selling price
- 1,200 currency units
- Gross profit
- 200 currency units
25% markup
- Selling price
- 1,250 currency units
- Gross profit
- 250 currency units
At 20% markup, profit is 200 out of a 1,200 selling price, or about 16.67% margin. At 25% markup, the margin is 20%. Decide which percentage your quote intends to express.
Fixed comparison in metric units. Values are illustrative unless linked to a recorded project; changing the calculator above does not change this example.
Formula
Selling price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost.
Worked example
Illustrative values match Reset example and stay fixed when you edit the calculator.
Starting-value worked example
- Total cost
- 1,000 currency units
- Markup on cost
- 25 %
Selling price: 1,250 currency units
Follow the calculation
- Selling price = 1,000 × (1 + 25 ÷ 100) = 1,250.
- Gross profit = selling price − 1,000. Equivalent margin = gross profit ÷ selling price × 100.
Reviewed 19 October 2026. How calculations are checked · Report a correction