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Set a price from cost plus markup, and see the margin it really delivers.
Buyers think in markup because they start from cost. Finance thinks in margin because it starts from revenue. This converter runs the bridge in the direction pricing actually happens — cost in, markup applied, price out — and shows the margin that will land in the accounts as a result.
Selling price
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What to charge to achieve the markup you entered.
Updates as you type · nothing leaves your browser
Your numbers
Landed cost gives the truest answer.
The formula
Price = Cost × (1 + Markup%) · Margin% = Markup% ÷ (100 + Markup%)
Work forward from the markup your buyers apply to the margin your accounts will report.
What it means
Gross Margin — full definition
Read in the glossaryEnter the cost you will actually be charged against, including freight and duty where relevant.
Enter the markup convention your category uses — the multiplier your buyers or price list rules apply.
Read the resulting margin and check it against the margin the category is budgeted to deliver.
Markup and margin diverge fast. 25% markup is 20% margin; 100% markup is 50% margin; a 300% markup is only 75% margin. The gap grows with the number.
A single company-wide markup rule guarantees inconsistent margins across categories with different cost structures.
Worked example
Cost 18 with a 66.7% markup prices at 30.01 and delivers a 40% margin. Turn it around: to hit a 40% margin from an 18 cost you must mark up by 66.7%, not 40%. Buyers who apply the margin figure as a markup will price at 25.20 and miss target on every unit.
Markup% = Margin% ÷ (100 − Margin%) × 100. For 40% margin, mark up 66.7%; for 50% margin, mark up 100%.
Almost always because the markup rule was populated with margin targets. Check one line by hand — if the reported margin is below target by roughly the square of the rate, this is the cause.
Set the list price from markup, then model discounts separately. Discounting erodes margin far faster than it erodes markup, and only the margin view shows that.
This calculator works on one set of numbers. AWRA OpsHub keeps markup to margin converter results current across every item, supplier and location — automatically.
Turn cost and price into margin %, markup % and profit per unit.
Find the sales volume where contribution finally covers your fixed costs.
Work out the true per-unit cost once freight, duties and fees are in.