Markup Calculator
Enter cost and selling price to find the markup percentage — and the gross margin it works out to, side by side.
On €100.00 of revenue with €60.00 of cost, the profit is €40.00. That's a markup of 66.67% — and an equivalent gross margin of 40.00%.
Results update as you type.
Formula
Markup is profit as a percentage of cost:
markup% = (revenue − cost) / cost × 100.
To go the other way — set a price from a target markup —
price = cost × (1 + markup%/100).
The equivalent gross margin is always smaller because it divides by the larger number:
margin% = markup% / (1 + markup%/100).
When this calculator helps
Pricing decides whether a product earns its place, and businesses across the euro area price the same intuitive way: take the cost of an item and add a percentage on top. This calculator is for that moment — you know the net cost of a product and you want a selling price that builds in the profit your business needs to stay viable and competitive in your market.
It suits anyone setting prices: a shop marking up stock from a distributor, an online seller costing a new product for several EU markets, a maker pricing a craft line, or a wholesaler quoting trade prices. Because markup is the figure distributors and trade buyers across the euro area typically deal in, working in markup keeps you aligned with how your suppliers and customers think about price.
How to read your result
The two outputs worth your attention are the selling price and the cash profit per unit. The selling price is your cost with the markup added; the profit is the difference between price and cost — the gross euros that must cover every other expense before any of it is yours to keep.
The crucial distinction is markup versus margin, which are not the same number and are endlessly confused. Markup expresses profit as a percentage of cost, so €40 of profit on a €60 cost is a 66.67% markup. Margin expresses that same €40 as a percentage of the selling price, so on a €100 price it is a 40% margin. Markup is always the larger figure on a profitable item. The conversion is margin% = markup% / (1 + markup%/100), so a 50% markup is a 33.33% margin.
A worked example
Imagine you source a product from a distributor for €36 net and apply a 70% markup. The markup adds €25.20, giving a selling price of €61.20 before VAT. That €25.20 is your gross profit per unit, and it still has to cover logistics, payment fees, your premises and your time before it counts as real profit. Expressed as a margin, €25.20 on a €61.20 price is roughly 41% — the figure you'd carry into your accounts, even though you set the price as a 70% markup.
Common mistakes to avoid
Most markup errors come from confusing the two percentages or from including amounts in the calculation that don't belong there.
- Confusing markup with margin — treating a 40% markup as a 40% margin quietly undercharges on every sale.
- Marking up a price that already includes VAT, which inflates the apparent markup by the VAT rate.
- Assuming gross profit is what you keep — rent, wages, fees and shrinkage all come out of it first.
- Borrowing a competitor's markup without checking their cost base resembles yours.
Markup and VAT across the euro area
Across the euro area, markup is calculated on the net (VAT-exclusive) cost, and VAT is added to the selling price separately — it is never part of your markup. VAT you charge customers is collected on behalf of the tax authority and passed onward, so it is neither your revenue nor your profit. Building VAT-inclusive figures into the markup calculation will overstate your profit by roughly the VAT rate that applies.
VAT is harmonised in structure across the EU but not in rate: standard rates differ from one member state to the next, and reduced rates apply to certain goods such as food, books and some essentials. Whatever the local rate, keep your markup calculation on net cost and net price, and treat VAT as a separate line so your pricing reflects the margin you genuinely keep.
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Frequently asked questions
What's the difference between markup and margin?▾
Markup = profit / cost. Margin = profit / revenue. Same euro profit, different denominator, different percentage. €40 profit on a €60 cost = 67% markup. €40 profit on a €100 sale = 40% margin. They are not interchangeable — using one figure where the other is needed is the most common pricing error.
How do I price for a target markup?▾
price = cost × (1 + markup%/100). €60 × 1.50 = €90 selling price for a 50% markup. This calculator computes the reverse, but the relationship is symmetric.
Markup or margin in different EU markets?▾
Both are universal — neither is country-specific. Some industries lean toward markup (retail, hospitality, distribution); others toward margin (SaaS, finance, manufacturing reporting). Inside an EU market, it's worth knowing your competitor's preferred metric — distributors usually quote in markup and end-customers in margin.
Why is markup always larger than margin on a profitable product?▾
Because cost (the markup denominator) is smaller than revenue (the margin denominator). The conversion is margin% = markup% / (1 + markup%/100). So a 25% markup is only a 20% margin, 50% markup is 33.33% margin, and 100% markup is 50% margin.
Should I use VAT-inclusive or VAT-exclusive figures?▾
VAT-exclusive — the calculator gives the markup on the actual revenue and cost you keep. VAT collected from customers is owed onward to the tax authority and isn't part of either side. If you have VAT-inclusive numbers, use the Reverse VAT Calculator to strip the tax out first.