Markup vs. Margin Calculator (Cost, Selling Price, Markup %, Margin % and Cost Ratio)

Enter the two values you know out of cost, selling price, cost ratio (%), margin (%) and markup (%), leave the rest blank and press "Calculate". The blank values and the gross profit are calculated, and a bar splitting the selling price into cost and gross profit shows where the cost ratio falls.

Cost (what you paid)

Selling price (list price)

Cost ratio (%)

Margin (%)

Markup (%)

Enter exactly two values (it cannot calculate with three or more). Enter the cost ratio, margin and markup as percentages (for 70% of the price, enter "70"; for a 30% margin, enter "30"). Two percentages alone (such as cost ratio and margin) do not fix the dollar amounts, so enter either the cost or the price. Pricing below cost, where the price is lower than the cost, also works, with a negative margin and markup.

Result and graph

Fill in two of the fields on the left and press "Calculate". The result and a breakdown of the selling price will appear here.

[ CLOSE ]

What you can do on this page
What is this calculation used for?
How to Use
Formulas and figures
Symbols and terms
- Symbols
- Terms
Good to know before you start
How to calculate it in Excel
How to calculate it in Google Sheets
How to calculate it in Python
How to write it in LaTeX and other math languages (copy and paste)
How to have ChatGPT do the calculation
DataChef Features
Related Features
NumberChef Calculators List

What you can do on this page

Enter any two of the five - cost, selling price, cost ratio (%), margin (%) and markup (%) - and get the other three plus the gross profit per item
"I buy at 70% of list. What is my margin?" "What price gives a 30% margin on a $700 cost?" "If I mark up cost by 25%, what is my margin?" Retail and wholesale pricing questions are answered in one place
Conversion formulas and quick tables for cost ratio ⇄ margin (margin = 100 − cost ratio) and margin ⇄ markup (price or cost in the denominator) let you translate any percentage a supplier or a report uses into the base you work with
A bar that splits the selling price into cost and gross profit shows the cost ratio (what share of the price the cost is) at a glance
A plain-language explanation of the formulas and copy-and-paste formulas for Excel, Google Sheets and Python are all on this page

On this page, "margin" is the gross profit (price − cost) as a share of the selling price, so it is based on the price (in retail, this is the markup on retail). The same gross profit as a share of the cost is kept apart as "markup" (markup on cost). How margin at pricing time differs from the gross margin you actually earn is explained under the formulas. Cost and price must be amounts greater than 0, in any currency.

What is this calculation used for?

Turning a wholesale offer like "70% of list" into your profit (buying for a store)

When a distributor or maker offers an item "at 70% of MSRP", an item with a $50 MSRP costs you $50 \times 0.7 = 35$ dollars. If it sells at list price, your gross profit is $15 and your margin is $100 - 70 = 30$%.
"65% of list is a 35% margin, 60% of list is 40%": the cost ratio turns straight into your profit share. If you can do this conversion on the spot, you can judge whether a deal is good right there in the negotiation.

Setting a price from a target margin (pricing in a gift shop or clothing store)

If an item costs $700 and your rule is to keep at least a 30% margin, the price is $700 \div (1 - 0.3) = 1000$ dollars.
If you just add 30% to the cost and charge $910, the margin is only $210 \div 910 \times 100 \approx 23.08$%. Mixing up margin (based on price) and markup (based on cost) is a common mistake in practice, and the more items you carry, the more it adds up in lost profit.

Measuring markdowns and shrinkage from the gap between initial markup and gross margin (store management)

Even in a department priced at a 30% initial markup, sale markdowns and unsold stock that has to be thrown out bring the gross margin at month-end down to, say, 25%. The gap (5 points here) is your markdowns and shrinkage.
The initial markup is the plan at pricing time; the gross margin is the result after items sell. Knowing that the same formula has two different meanings lets you trace "a good markup but no profit" to how you manage markdowns and shrinkage.

Converting a supplier's "markup" into your margin (importing and e-commerce)

Supplier sites and price lists often state profit as a markup based on cost. A "50% markup" is selling at 1.5 times the cost, which as a margin based on price is $50 \div (100 + 50) \times 100 \approx 33.33$%.
The same "50%" gives very different profit depending on the base, so before comparing with your own margin target, use this formula to put both on the same base.

Allowing for marketplace fees when pricing handmade goods (side business)

If materials and shipping put your cost at $8 per piece and you want a 40% margin, the price is $8 \div 0.6 \approx 13.33$ dollars. But online marketplaces take their selling fees (for example, 10% of the price) after the sale, so your real gross margin ends up lower than your margin by the amount of the fees.
To avoid "I priced for a 40% margin, but little is left after fees", it is safest to check the gross margin after taking out the fees.

Formulas and figures

Formula for the cost ratio

Figure

Standard notation (the usual math form)

$r$ $=$ $C$ $\div$ $P$ $\times$ $100$

In words (symbols replaced with words)

④ $r$: cost ratio (%) $=$ ① $C$: cost $\div$ ② $P$: selling price $\times$ ③ $100$: percent base

The formula in words

① Take the $C$: cost

② divide it by the $P$: selling price

③ multiply by the $100$: percent base to turn it into a percent,

④ and you get the $r$: cost ratio (%)

Quick example

If you buy an item with a $1,000 list price for $700, the cost ratio is

$r$: cost ratio (%) $=$ cost ($700) $\div$ selling price ($1,000) $\times$ $100$

$700 \div 1000 \times 100 = 70\ \ (70\%)$

Key idea

The cost ratio is the cost as a percentage of the selling price (list price). It is how a wholesale deal looks from the store's side: buying "at 70% of list" gives a cost ratio of 70%, which is the same as a 30% trade discount off list. In retail accounting, the same number is called the cost complement. The lower the cost ratio, the cheaper you buy and the more you keep when the item sells. A cost ratio above 100% signals selling below cost (the cost is higher than the price).

Formula for the margin

Figure

Standard notation (the usual math form)

$M$ $=$ $($ $P$ $-$ $C$ $)$ $\div$ $P$ $\times$ $100$

In words (symbols replaced with words)

⑤ $M$: margin (%) $=$ $($ ① $P$: selling price $-$ ② $C$: cost $)$ $\div$ ③ $P$: selling price $\times$ ④ $100$: percent base

The formula in words

① From the $P$: selling price

② subtract the $C$: cost to get the gross profit,

③ divide it by the $P$: selling price

④ multiply by the $100$: percent base to turn it into a percent,

⑤ and you get the $M$: margin (%)

Quick example

If an item costs $700 and you price it at $1,000, the margin is

$M$: margin (%) $=$ $($ selling price ($1,000) $-$ cost ($700) $)$ $\div$ selling price ($1,000) $\times$ $100$

$1000 - 700 = 300$

$300 \div 1000 \times 100 = 30\ \ (30\%)$

Key idea

When a store prices an item, the gross profit it plans to make is the price minus the cost, and the margin is that gross profit divided by the selling price (based on the price). Retailers call this planned margin the initial markup (IMU), or markup on retail. It is often mixed up with the gross margin. The formula has exactly the same shape (gross profit ÷ sales × 100), but the gross margin is the actual result after the items sell. Markdowns in a sale and shrinkage (damaged, lost or stolen stock) make actual sales lower than the planned prices, so the gross margin is normally lower than the initial markup. If you priced for a 30% margin but ended the month at a 25% gross margin, the gap is your markdowns and shrinkage.

Converting between cost ratio and margin

Standard notation (the usual math form)

$M$ $=$ $100$ $-$ $r$

In words (symbols replaced with words)

③ $M$: margin (%) $=$ ① $100$: percent base $-$ ② $r$: cost ratio (%)

The formula in words

① From the $100$: percent base

② subtract the $r$: cost ratio (%)

③ and you get the $M$: margin (%)

Quick example

If you buy at 70% of list (a cost ratio of 70%) and sell at the list price, the margin is

$M$: margin (%) $=$ $100$ $-$ cost ratio (70%)

$100 - 70 = 30\ \ (30\%)$

Key idea

The cost ratio and the margin are both shares of the selling price (with the price as 100%). Split the price bar into cost and gross profit: the cost side is the cost ratio and the gross profit side is the margin. The two always add up to 100%, so if you know one, subtraction gives you the other. The other way around is cost ratio $r = 100 - M$. Quick table: cost ratio 90% → margin 10%, 80% → 20%, 70% → 30%, 65% → 35%, 60% → 40%, 50% → 50%. Buying at 50% of retail and selling at double the cost is known as keystone pricing (a 50% margin and a 100% markup).

Formula for the selling price (from cost and cost ratio)

Figure

Standard notation (the usual math form)

$P$ $=$ $C$ $\div$ $\dfrac{r}{100}$

In words (symbols replaced with words)

③ $P$: selling price $=$ ① $C$: cost $\div$ ② cost ratio $r \div 100$

The formula in words

① Take the $C$: cost

② divide it by the cost ratio $r \div 100$ (the share of the price taken by the cost, as a decimal)

③ and you get the $P$: selling price

Quick example

If you paid $1,400 for an item sold to you at 70% of list, its list price (selling price) is

$P$: selling price $=$ cost ($1,400) $\div$ $70 \div 100$

$70 \div 100 = 0.7$

$1400 \div 0.7 = 2000$

Key idea

This is "cost = price × cost ratio ÷ 100" (70% of a $2,000 list price is $2000 \times 0.7 = 1400$ dollars) rearranged to find the price. Dividing by the cost ratio may feel backward, but it is simple percent thinking: if 70% of the price is $1,400, then the price = 1,400 ÷ 0.7. To set a price from a target margin, first find the cost ratio $r = 100 - M$, then use this formula. For a 30% margin on a $700 cost, the cost ratio is 70%, so the price is $700 \div 0.7 = 1000$ dollars. Be careful: if you just add 30% to the cost to get $910, the margin is only $210 \div 910 \times 100 \approx 23.08$%.

Formula for the markup (markup on cost)

Figure

Standard notation (the usual math form)

$K$ $=$ $($ $P$ $-$ $C$ $)$ $\div$ $C$ $\times$ $100$

In words (symbols replaced with words)

⑤ $K$: markup (%) $=$ $($ ① $P$: selling price $-$ ② $C$: cost $)$ $\div$ ③ $C$: cost $\times$ ④ $100$: percent base

The formula in words

① From the $P$: selling price

② subtract the $C$: cost to get the gross profit,

③ divide it by the $C$: cost

④ multiply by the $100$: percent base to turn it into a percent,

⑤ and you get the $K$: markup (%)

Quick example

If an item costs $700 and you price it at $1,000, the markup is

$K$: markup (%) $=$ $($ selling price ($1,000) $-$ cost ($700) $)$ $\div$ cost ($700) $\times$ $100$

$1000 - 700 = 300$

$300 \div 700 \times 100 \approx 42.86\ \ (42.86\%)$

Key idea

The markup is how many percent you added on top of the cost to set the price, so it uses the cost as the base (denominator). Retailers also call it markup on cost. With the same $300 of gross profit, the margin (based on price) is 30%, while the markup (based on cost) is about 42.86%. The only difference is whether you divide by the price or by the cost. To get the price from a markup, use price = cost × (1 + markup ÷ 100) (adding 42.86% to a $700 cost gives $700 \times 1.4286 \approx 1000$ dollars). "Mark up the cost by 30%" is pricing with a 30% markup, not with a 30% margin.

Converting markup to margin

Standard notation (the usual math form)

$M$ $=$ $K$ $\div$ $($ $100$ $+$ $K$ $)$ $\times$ $100$

In words (symbols replaced with words)

④ $M$: margin (%) $=$ ① $K$: markup (%) $\div$ $($ ② $100$: percent base $+$ $K$: markup (%) $)$ $\times$ ③ $100$: percent base

The formula in words

① Take the $K$: markup (%)

② divide it by the $100$: percent base plus the markup $K$ (the price when the cost is 100),

③ multiply by the $100$: percent base to turn it into a percent,

④ and you get the $M$: margin (%)

Quick example

If you price by adding 25% to the cost (a 25% markup), the margin is

$M$: margin (%) $=$ markup (25%) $\div$ $($ $100$ $+$ $25$ $)$ $\times$ $100$

$25 \div (100 + 25) \times 100 = 20\ \ (20\%)$

Key idea

If the cost is 100, pricing with a $K$% markup gives a price of $100 + K$ and a gross profit of $K$. The margin is gross profit ÷ price, so it is $K \div (100 + K)$. That is all this formula says. The other way (margin → markup) is $K = M \div (100 - M) \times 100$, which rewrites the margin with the cost as the base. Quick table: markup 10% → margin about 9.09%, 20% → about 16.67%, 25% → 20%, 30% → about 23.08%, 50% → about 33.33%, 100% (selling at double the cost) → 50%. The markup is always larger than the margin; even a 100% markup is only a 50% margin.

The cost ratio is "cost ÷ price × 100" and the margin is "(price − cost) ÷ price × 100". Both are shares of the selling price, so margin = 100 − cost ratio. Only the markup uses the cost as its base, and you convert it with margin = markup ÷ (100 + markup) × 100. The trick is to check first which amount a percentage is based on.

Symbols and terms

Symbols

$C$	C	Cost (from the first letter of cost): what you paid for the item. (Example - if you bought it for $700, $C = 700$)
$P$	P	Selling price (from the first letter of price): the price you put on the item (the list or retail price).
$r$	r	The cost ratio (%): the cost as a percentage of the selling price. This page writes it $r$, for rate (there is no standard one-letter symbol). It is found with $r = C \div P \times 100$.
$M$	M	The margin (%): the gross profit (price − cost) as a percentage of the selling price. $M$ is for margin. It is found with $M = (P - C) \div P \times 100$.
$K$	K	The markup (%): the gross profit as a percentage of the cost. There is no standard one-letter symbol, so this page writes it $K$ (the same symbol as on the Profit Margin Calculator page). It is found with $K = (P - C) \div C \times 100$.
$P - C$	P minus C	The gross profit per item (price − cost), also called the dollar markup. It is the profit built into the price, and it becomes real gross profit when the item actually sells.

Terms

cost ratio	The cost (what you paid) as a percentage of the selling price (list price). Buying "at 70% of list" gives a cost ratio of 70%, the same as a 30% trade discount. In retail accounting it is called the cost complement. It adds up to 100% with the margin.
initial markup (IMU)	In retail, the profit planned into the price when an item is first priced (price − cost), usually stated as a percentage of the price. It is the "before markdowns" margin.
margin (markup on retail)	The gross profit as a percentage of the selling price. It tells you what percent of the price is profit, with the price as the base (denominator). Retail textbooks call it markup on retail to tell it apart from markup on cost.
gross margin	Gross profit (sales − cost of goods sold) as a percentage of actual sales. The formula has the same shape as the margin, but the margin at pricing time is a plan, while the gross margin is the result after items sell. Markdowns and shrinkage make the gross margin lower than the initial markup.
markup (markup on cost)	The gross profit as a percentage of the cost. It tells you how many percent you added on top of the cost, with the cost as the base (denominator). For the same gross profit, it is always a larger number than the margin.
cost (cost of goods)	What it took to get the item. For a store, it is the wholesale price; for a maker, it is materials and production costs. In the cost ratio, it is the top of the fraction - what percent of the price went to buying the item.
selling price (list price)	The price put on the item. In the cost ratio and the margin, this price counts as 100%. Wholesale terms are often stated against the manufacturer's suggested retail price (MSRP), as in "70% of MSRP".
selling below cost	When the price is lower than the cost. The cost ratio goes above 100%, and the margin and markup become negative. It happens in clearance sales to get rid of stock, for example.

Good to know before you start

Here is what helps you use the calculation on this page with real understanding, not just by pressing the button.

Percents (Grade 6)	Knowing that a percent is found as part ÷ whole Being able to switch between percents and decimals ($70\% = 0.7$, $0.3 = 30\%$) Noticing that a percentage changes with the base (the whole) it is measured against (the margin is based on the price, the markup on the cost)
The percent equation (Grades 6–7)	Being able to use "part = whole × percent" in the form that finds the value you want (this is why working back to the price calls for dividing by the cost ratio)
Multiplying and dividing decimals (Grades 5–6)	Being able to divide by a decimal, as in $1400 \div 0.7$
Expressions and rearranging equations (Grades 7–8)	Understanding a formula with letters such as $C = P \times r \div 100$, and being able to rearrange it to find another quantity, as in $P = C \div (r \div 100)$ Being able to rearrange $M = 100 - r$ into $r = 100 - M$

How to calculate it in Excel

Copy the whole table below and paste it into cell A1 in Excel. It works as is.

Table to find the cost ratio

Cost C	700
Selling price P	1000
Cost ratio r (%)	=B1/B2*100

Table to find the margin

Cost C	700
Selling price P	1000
Margin M (%)	=(B2-B1)/B2*100

Cost ratio ⇄ margin conversion table

Cost ratio r (%)	70
Margin M (%)	=100-B1

Table to find the selling price (from cost and cost ratio)

Cost C	1400
Cost ratio r (%)	70
Selling price P	=B1/(B2/100)

Table to find the markup

Cost C	700
Selling price P	1000
Markup K (%)	=(B2-B1)/B1*100

Markup ⇄ margin conversion table

Markup K (%)	25
Margin M (%)	=B1/(100+B1)*100

After pasting, B1 (and B2) are your inputs and the last row is calculated automatically.
For example, the first table shows 70 in B3 (a 70% cost ratio), the second shows 30 in B3 (a 30% margin), the third shows 30 in B2, the fourth shows 2000 in B3 (a selling price of $2,000), the fifth shows about 42.86 in B3 (the markup) and the sixth shows 20 in B2 (a 20% margin). Just replace the inputs with your own numbers.

How to calculate it in Google Sheets

Copy the whole table below and paste it into cell A1 in Google Sheets. It works as is.

Table to find the cost ratio

Cost C	700
Selling price P	1000
Cost ratio r (%)	=B1/B2*100

Table to find the margin

Cost C	700
Selling price P	1000
Margin M (%)	=(B2-B1)/B2*100

Cost ratio ⇄ margin conversion table

Cost ratio r (%)	70
Margin M (%)	=100-B1

Table to find the selling price (from cost and cost ratio)

Cost C	1400
Cost ratio r (%)	70
Selling price P	=B1/(B2/100)

Table to find the markup

Cost C	700
Selling price P	1000
Markup K (%)	=(B2-B1)/B1*100

Markup ⇄ margin conversion table

Markup K (%)	25
Margin M (%)	=B1/(100+B1)*100

The same formulas as in Excel work as is. Copy the whole table, paste it into cell A1, and replace the inputs with your own numbers.

How to calculate it in Python

cost = 700       # cost (what you paid)
price = 1000     # selling price (list price)

gross = price - cost                  # gross profit (dollar markup)
kake = cost / price * 100             # cost ratio (%)
neire = gross / price * 100           # margin (%) = 100 - cost ratio
markup = gross / cost * 100           # markup (%)

print(f"Gross profit: {gross}")
print(f"Cost ratio: {kake}% ({kake / 10:g}/10 of the price)")
print(f"Margin: {neire}%")
print(f"Markup: {markup}%")

# Working back: find the selling price (list price) from the cost and the cost ratio
cost2 = 1400            # cost
kake2 = 70              # cost ratio (%)
price2 = cost2 * 100 / kake2   # same as cost ÷ (cost ratio ÷ 100) (multiply by 100 first to avoid decimal error)
print(f"Selling price at a {kake2}% cost ratio: {price2}")

# Converting: find the margin from the markup
markup3 = 25            # markup (%)
neire3 = markup3 / (100 + markup3) * 100
print(f"A {markup3}% markup is a {neire3}% margin")

Runs with the standard library only. In this example, the gross profit is 300, the cost ratio is 70.0% (7/10 of the price), the margin is 30.0%, the markup is about 42.86%, the selling price worked back is 2000.0, and the converted margin is 20.0. Change the cost and price at the top and run it.

How to write it in LaTeX and other math languages (copy and paste)

Formula for the cost ratio

r = C ÷ P × 100

r = \dfrac{C}{P} \times 100

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>r</mi>
    <mo>=</mo>
    <mfrac><mi>C</mi><mi>P</mi></mfrac>
    <mo>&#xD7;</mo>
    <mn>100</mn>
  </mrow>
</math>

r = C/P xx 100

c/p*100

r := C/P*100;

r = C/P*100;

r = C/P × 100

Formula for the margin

M = (P − C) ÷ P × 100

M = \dfrac{P - C}{P} \times 100

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>M</mi>
    <mo>=</mo>
    <mfrac>
      <mrow><mi>P</mi><mo>&#x2212;</mo><mi>C</mi></mrow>
      <mi>P</mi>
    </mfrac>
    <mo>&#xD7;</mo>
    <mn>100</mn>
  </mrow>
</math>

M = (P - C)/P xx 100

(p - c)/p*100

M := (P - C)/P*100;

M = (P - C)/P*100;

M = (P - C)/P × 100

Converting between cost ratio and margin

M = 100 − r

M = 100 - r

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>M</mi>
    <mo>=</mo>
    <mn>100</mn>
    <mo>&#x2212;</mo>
    <mi>r</mi>
  </mrow>
</math>

M = 100 - r

100 - r

M := 100 - r;

M = 100 - r;

M = 100 - r

Formula for the selling price (from cost and cost ratio)

P = C ÷ (r ÷ 100)

P = \dfrac{C}{r/100}

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>P</mi>
    <mo>=</mo>
    <mfrac>
      <mi>C</mi>
      <mrow><mi>r</mi><mo>/</mo><mn>100</mn></mrow>
    </mfrac>
  </mrow>
</math>

P = C/(r/100)

c/(r/100)

P := C/(r/100);

P = C/(r/100);

P = C/(r/100)

Formula for the markup (markup on cost)

K = (P − C) ÷ C × 100

K = \dfrac{P - C}{C} \times 100

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>K</mi>
    <mo>=</mo>
    <mfrac>
      <mrow><mi>P</mi><mo>&#x2212;</mo><mi>C</mi></mrow>
      <mi>C</mi>
    </mfrac>
    <mo>&#xD7;</mo>
    <mn>100</mn>
  </mrow>
</math>

K = (P - C)/C xx 100

(p - c)/c*100

K := (P - C)/C*100;

K = (P - C)/C*100;

K = (P - C)/C × 100

Converting markup to margin

M = K ÷ (100 + K) × 100

M = \dfrac{K}{100 + K} \times 100

<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>M</mi>
    <mo>=</mo>
    <mfrac>
      <mi>K</mi>
      <mrow><mn>100</mn><mo>+</mo><mi>K</mi></mrow>
    </mfrac>
    <mo>&#xD7;</mo>
    <mn>100</mn>
  </mrow>
</math>

M = K/(100 + K) xx 100

k/(100 + k)*100

M := K/(100 + K)*100;

M = K/(100 + K)*100;

M = K/(100 + K) × 100

How to have ChatGPT do the calculation

You are an assistant for retail and wholesale pricing. Do the following calculation by actually running Python code, and base your answer only on the numbers from the execution result (do not answer by mental math or guessing).

An item costs $700 (what I paid) and sells for $1,000.
Find each of the following:
1. The gross profit (price − cost)
2. The cost ratio (cost ÷ price × 100, in %)
3. The margin (gross profit ÷ price × 100, in %)
4. The markup (gross profit ÷ cost × 100, in %)
5. For another item: if I paid $1,400 for it at 70% of list (a 70% cost ratio), what is the list price? (price = cost ÷ (70/100))
6. Conversion: what margin does a 25% markup give? (margin = 25 ÷ (100 + 25) × 100)

Show the formulas you used and the numbers from the execution result.

How to Use

1

Enter your numbers

Type the numbers you want to calculate with into the input fields
2

Calculate

Press the "Calculate" button
3

Check the result

The result appears on the spot. The same page also explains the idea behind the calculation and the formula

DataChef Features

Easy and Free

Unlimited conversions for free.
No technical knowledge required.
Intuitive and user-friendly operation.

No Registration Required

Available immediately after access.
Can be used without registering personal information.

Safe and Secure

Fully SSL encrypted communication.
Automatic file deletion by clicking "download".

Fast

High-speed site access
and rapid file conversion.

No Watermark

No watermark.
No attribution required.

Commercial Use Available

Free for commercial use.
No need to contact us for commercial use permission.

\(C\)	C	Cost (from the first letter of cost): what you paid for the item. (Example - if you bought it for $700, \(C = 700\))
\(P\)	P	Selling price (from the first letter of price): the price you put on the item (the list or retail price).
\(r\)	r	The cost ratio (%): the cost as a percentage of the selling price. This page writes it \(r\), for rate (there is no standard one-letter symbol). It is found with \(r = C \div P \times 100\).
\(M\)	M	The margin (%): the gross profit (price − cost) as a percentage of the selling price. \(M\) is for margin. It is found with \(M = (P - C) \div P \times 100\).
\(K\)	K	The markup (%): the gross profit as a percentage of the cost. There is no standard one-letter symbol, so this page writes it \(K\) (the same symbol as on the Profit Margin Calculator page). It is found with \(K = (P - C) \div C \times 100\).
\(P - C\)	P minus C	The gross profit per item (price − cost), also called the dollar markup. It is the profit built into the price, and it becomes real gross profit when the item actually sells.

Markup vs. Margin Calculator (Cost, Selling Price, Markup %, Margin % and Cost Ratio)

Table of Contents

What you can do on this page

What is this calculation used for?

Formulas and figures

Symbols and terms

Symbols

Terms

Good to know before you start

How to calculate it in Excel

How to calculate it in Google Sheets

How to calculate it in Python

How to write it in LaTeX and other math languages (copy and paste)

How to have ChatGPT do the calculation

How to Use

DataChef Features

Related Features

Profit Margin Calculator (Cost, Revenue, Profit and Markup)

Find cost, revenue, margin or profit from any two. Use it when you think in terms of profit and profit margin rather than cost ratio

Percentage Calculator (Percent, Part and Whole)

Find the part, the whole or the percent from the other two. It is the basis of the markup and margin calculations

Break-Even Point Calculator (Break-Even Sales and Units, Margin of Safety, Sales for a Target Profit)

Find the sales and units needed to avoid a loss (the break-even point) from fixed costs, price and variable cost. The next step after pricing one item

Recommended

Probability and random number

Averages and statistics

Percentage and ratio

Speed

Density and concentration

Physics and electricity

Unit conversion

Integer and signed number

Fraction, decimal and rounding

Equation and inequality

Polynomial

Square root and nth root

Exponent and logarithm

Complex number

Function and graph

Sequence

Vector

Matrix

Plane geometry

Solid geometry

Date and time

Finance and economics

Web marketing and ad metric

Health and fitness

Sports

Weather

Computer

Household energy and budget

Car

Solar power and battery

Home and DIY

Remove Ads