Reverse markup calculator
Handy when you know the selling price and the usual markup and want the cost, such as checking a supplier or rival price.
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How to use it
- Enter selling price and markup.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Cost = price ÷ (1 + markup ÷ 100). Profit = price - cost. Margin = profit ÷ price × 100.
Example
Inputs: Selling price = 90, Markup = 50 %. Result: Cost: 60.00; Profit per unit: 30.00; Margin on selling price: 33.33%.
Limits and caveats
- If the price includes VAT, remove the tax first or the cost will come out too high.
Questions about this tool
Why not just subtract the markup from the price?
The markup is a share of cost, not of price. Taking 50% off 90 gives 45, while the real cost is 60.
Can it estimate a wholesale price?
Yes. If you know the markup a retailer adds on wholesale, the cost it returns is the approximate wholesale price.
What if I know the margin, not the markup?
Then cost = price × (1 - margin ÷ 100). You can also convert the margin to a markup and use this tool.