Calculate the original cost from a selling price and markup percentage, or solve for selling price, markup or margin from the other two values.

Markup is based on cost. Amounts use US dollars.

Optional settings

Assumptions Read first
  • Select the value to find, then complete the displayed inputs. Only fields for that solve mode are used.
  • “Markup Percentage” is markup on cost, not profit margin. It uses: (Final Price − Original Cost) ÷ Original Cost × 100.
  • Negative markup means selling below cost. When finding cost, −100% markup cannot determine a unique cost from a zero price and cannot yield a positive price. Finding markup requires a positive cost. A 100% gross margin cannot determine selling price from cost.
  • Simple, single-step calculation only; no compounding, tiered or cumulative markups. Taxes, shipping, fees, coupons, and currency conversion are not included unless you incorporate them into the inputs.
  • Amounts are labeled in US dollars. The calculator does not convert currencies. Decimals are allowed.
  • Amounts display up to two decimal places and percentages up to three; very small nonzero amounts use scientific notation. Rounding affects display only.
  • This tool performs arithmetic only and does not constitute pricing, accounting, or tax advice.
When to Use This Calculator
  • Back-calculate the Original Cost from a known Final Price and Markup Percentage.
  • Find the Final Price given an Original Cost and desired Markup Percentage.
  • Determine the Markup Percentage between a known cost and selling price.
  • Sanity-check vendor quotes, discounts (negative markup), and internal pricing scenarios.
Input Definitions
  • Original Cost ($) — The nonnegative baseline cost before markup/discount. It must be greater than zero when computing Markup Percentage.
  • Markup Percentage (%) — Percent applied to cost. Positive increases price; negative represents a discount. Defined as ((Final − Cost) ÷ Cost) × 100.
  • Final Marked-Up Price ($) — Selling price after applying markup to the Original Cost.
  • Formulas
    • Final Price = Original Cost × (1 + Markup% ÷ 100)
    • Markup% = ((Final Price − Original Cost) ÷ Original Cost) × 100
    • Original Cost = Final Price ÷ (1 + Markup% ÷ 100)
  • Input tips — Choose a solve mode and enter the displayed values. Markup cannot be below −100%; gross margin cannot exceed 100%. Inverse calculations reject cases that cannot have a unique nonnegative answer.

Related Calculators

Reverse Markup Calculator Formula

The following equation is used to calculate the Reverse Markup.

C = PF / (1 + M)
  • Where C is the original cost ($)
  • PF is the final (marked-up) price ($)
  • M is the markup as a decimal (e.g., 30% = 0.30)

To calculate the original cost, simply divide the final price by 1 plus the markup rate (in decimal form).

What is a Reverse Markup Calculator?

Definition:

A Reverse Markup Calculator is a tool used to identify the original cost of a product when you already know the final, marked-up price and the markup percentage. It is particularly helpful for individuals or businesses that want to confirm the base cost of an item after it’s been marked up.

How to Calculate Reverse Markup?

Example Problem:

The following example outlines the steps and information needed to calculate the Reverse Markup.

First, determine the final price. In this example, the final price of a product is $130.00.

Next, determine the markup percentage. In this case, the markup is 30% (0.30 as a decimal).

Finally, calculate the original cost using the formula above:

C = PF / (1 + M)

C = $130 / (1 + 0.30)

C = $130 / 1.30 = $100

FAQ

Why is the Reverse Markup Calculator useful?

This calculator helps businesses and individuals quickly determine the original cost of a product when only the final selling price and markup are known. It streamlines pricing analysis and helps with cost verification.

How does markup differ from margin?

Markup is based on the cost of the product, indicating how much you add to that cost to arrive at a selling price. Margin, on the other hand, is based on the selling price, measuring what percentage of the final price is profit.

Can a Reverse Markup Calculator be used for discounts?

Yes. Enter a negative markup for a reduction from cost: a −20% markup multiplies cost by 0.80, so reversing it divides the selling price by 0.80. A −100% markup gives zero price for any cost, so the original cost cannot be recovered uniquely.