66.6667 is the example result. The cost base is the denominator. A 50% markup corresponds to a one-third selling-price margin when there are no other costs.
Markup measures how far a selling price sits above the cost entered. Use it to check an existing quote or compare proposed prices. The cost denominator makes markup different from profit margin.
Check the cost base before quoting
Include the costs that the quoted work must recover. Materials alone may be an incomplete base for a service or custom project. The result describes the uplift above the cost entered, so label that cost basis clearly when another person reviews the quote.
Why markup and margin differ
Selling price includes both cost and the amount above cost. Markup divides that amount by cost; margin divides it by selling price. The same quote therefore produces different percentages. Use markup to describe the cost uplift and margin to describe the share of revenue remaining.
Compare prices without hiding scope changes
Keep the cost estimate fixed when comparing alternative selling prices. If delivery requirements change, update the cost estimate as a separate scenario. Zero cost makes this percentage undefined, and a selling price below cost produces negative markup.
Example with the supplied inputs
Cost: 60; Selling price: 100. Result: 66.6667. The values are illustrative.
Compare one changed input
Cost changes from 60 to 66. The result becomes 51.5152. All other inputs remain fixed.
Calculation rule
Result = (([Selling price] − [Cost]) ÷ ([Cost])) × 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Cost | 60 | Use cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Selling price | 100 | Use selling price on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 66.6667 is the example result. The cost base is the denominator. A 50% markup corresponds to a one-third selling-price margin when there are no other costs. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Cost, Selling price. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Cost on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 66.6667.
Change Cost from 60 to 66 while keeping every other value fixed. The result becomes 51.5152. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.