Small Business Pricing Calculator: Markup and Margin

Turn your cost into a price. Enter what something costs you, then see the price at your markup, the price for the margin you want, and how markup and margin compare.

How the small business pricing calculator: markup and margin works

Markup and margin are not the same number, and mixing them up is one of the most common pricing mistakes. Markup is measured against your cost; margin is measured against your price. A 50% markup gives a margin of only 33.3%.

This small business pricing calculator shows both side by side. Enter the margin you need to cover overhead and profit, and it tells you the exact price and the markup that produces it.

For the Excel formulas behind these numbers, read our guide on how to calculate markup and margin in Excel.

The formulas

Price from markup = cost x (1 + markup %)
Margin = (price – cost) / price
Price from margin = cost / (1 – margin %)
Markup needed for a margin = margin / (1 – margin)

Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of price, so margin is always the smaller number.

How do I price a product from cost?

Divide the cost by one minus your target margin, or multiply the cost by one plus your markup.

What markup gives a 30% margin?

About 42.9%. The calculator converts it for you.

Does this include overhead?

No. Include overhead in your cost, or choose a margin high enough to cover it.

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Estimates only. Results depend on the numbers you enter and are not financial, tax or legal advice.