Work out selling price from margin instantly with clear inputs, formula shown and shareable results.
Margin is measured against the selling price, so you cannot simply add the margin percentage to cost. Dividing cost by (1 - margin) grosses the cost up correctly and the calculator also shows the equivalent markup on cost, which is the number most suppliers quote.
Selling price
Price = Cost / (1 - Margin %)
Markup equivalent
Markup % = Margin % / (1 - Margin %)
Margin divides profit by price; markup divides the same profit by cost. A 35% margin is a 53.8% markup because the denominator is smaller.
It depends on the category: fast-moving grocery lines run on single digits, while services and branded goods routinely exceed 50%. Work back from the gross profit needed to cover fixed costs.