Markup Calculator

Reviewed

Enter details
$
%
ResultUpdates as you type
Selling price$60.00
Gross profit$20.00
Gross margin33.33%
Cost vs profit
  • Cost66.7%
  • Gross profit33.3%

Find the selling price, profit and margin from a cost and markup percentage. Free, instant results.

Enter your cost and the markup percentage you want to apply to see the selling price, the profit per unit and the resulting profit margin.

A markup calculator sets a selling price by adding a percentage to your cost. Enter the cost and the markup you want, and it returns the selling price, the profit per unit and the profit margin that markup produces.

Markup and margin are easy to confuse. A 50% markup does not mean a 50% margin — because markup is figured on the lower cost and margin on the higher price, the margin always comes out smaller. Seeing both side by side keeps your pricing honest and your profit protected.

How to use

  1. Enter the item cost.
  2. Enter the markup percentage.
  3. Read the selling price, profit and margin below.

Formula

Markup is a percentage added to the cost to reach the selling price.

Selling pricePrice = Cost × (1 + markup / 100)
MarginMargin % = (Price − Cost) / Price × 100

Worked examples

$40 cost, 50% markup

A 50% markup on a $40 cost adds $20 of profit for a $60 selling price — a 33.3% margin.

Frequently asked questions

How do I set a selling price from cost?

Decide the markup percentage you want on cost, then multiply the cost by (1 + markup/100). A 50% markup on a $40 cost gives a $60 selling price.

Why is my margin lower than my markup?

Markup is measured against cost while margin is measured against the higher selling price, so the margin percentage is always smaller than the markup.

What markup should retailers use?

Retail markups vary widely — often 50% to 100% or more depending on category, competition and overheads. Choose a markup that leaves a healthy margin after all costs.

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