Racira Calculator

Markup Calculator

Markup vs Margin, Once and for All

This markup calculator computes both sides of the same coin: markup — profit as a share of cost — and gross margin — profit as a share of price. Buy at $100, sell at $150: that is a 50% markup but only a 33.3% margin.

Two Ways to Price

Give the calculator cost plus selling price and it derives the markup; or give it cost plus a target markup and it derives the selling price. The math is the same either direction: price = cost × (1 + markup/100).

Why the Confusion Costs Money

Retailers who target "50% markup" are actually earning a 33% margin, and margin-based targets need a higher markup to hit. Converting is simple: margin = markup ÷ (1 + markup). Knowing which number you are quoting keeps your pricing honest.

Frequently Asked Questions

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