Reverse Calculators
Reverse Markup Calculator
Know the shelf price and markup percent? Recover the underlying cost.
Cost behind a marked-up price
Markup is a percentage of cost, not of selling price. If a retailer says “30% markup” and you only see the shelf price, cost = price ÷ (1 + markup ÷ 100). The tool recovers that cost, shows the markup amount (price − cost) and the implied margin on price so you can see how the two percentages diverge. Confusing markup with margin is a common pricing mistake — a 30% markup is roughly a 23% margin, not 30%. Use this when checking a claimed trade markup or backing into cost from a known list. Compare definitions in markup vs margin and recover cost from a margin claim with reverse margin.
Worked example
£130 selling price at 30% markup → cost = 130 ÷ 1.30 = £100. Markup amount £30; implied margin ≈ 23.1%.
Limits and assumptions
Single SKU, one markup rate. Not the same formula as margin %. Taxes and fees are not stripped automatically.
Frequently asked questions
Markup vs margin — which is which?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price.
Why reverse from price to cost?
To verify a retailer’s markup claim, set wholesale correctly, or compare with your true COGS (cost of goods sold).
Should VAT be in the selling price?
Strip VAT (value-added tax) first if you are working on net figures; keep gross consistently if you price tax-inclusive.
What does a negative markup mean?
You are selling below cost — contribution is negative.