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).
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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.