Enter the final price and the markup percentage into the calculator to determine the original cost.

Reverse Markup Calculator

Assumptions Read first
  • Provide exactly two of the three inputs and leave the third empty. If all three are filled you’ll be prompted to clear one; leaving more than one blank will not yield a valid result.
  • “Markup Percentage” is markup on cost, not profit margin. It uses: (Final Price − Original Cost) ÷ Original Cost × 100.
  • Negative percentages are treated as discounts. Constraints: when solving Original Cost, Markup Percentage cannot be −100% (division by zero); when solving Markup Percentage, Original Cost must be non‑zero.
  • 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.
  • Currency symbol is cosmetic; the tool works with any currency. Decimals are allowed.
  • Results are displayed rounded to 4 decimal places; 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 ($) — The baseline cost before any markup/discount. Must be non‑zero when computing Markup Percentage.
  • Markup Percentage (%) — Percent applied to cost. Positive increases price; negative represents a discount. Defined as ((Final − Cost) ÷ Cost) × 100.
  • Final Marked-Up Price ($) — 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 — Enter any two values and leave the third blank. Use decimals if needed. When solving for Original Cost, Markup% must not equal −100%.

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?

While this tool is designed specifically for reversing markup, a similar concept applies to discounts. However, reversing a discount typically involves subtracting a percentage from the original price rather than adding it, so the formulas are different.