How to use Markup Calculator
The markup calculator turns a cost and a markup percentage into a selling price, showing the profit you make and the margin that profit represents. Markup is the amount you add on top of cost, expressed as a percentage of that cost — add 50% to a $40 item and you sell it for $60. The tool also reports the profit margin, because the same profit looks like a smaller percentage when measured against the selling price. Everything runs in your browser with nothing uploaded.
- Enter the cost of the item.
- Enter the markup percentage you want to apply.
- Read the selling price and the profit.
- Check the resulting profit margin.
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Markup versus margin
These two are the most commonly confused numbers in pricing, and getting them backwards quietly erodes profit. Both describe the same dollar profit, but they divide it by different bases. Markup uses cost as the base, so it answers “how much did I add on top of what I paid?” Margin uses the selling price as the base, answering “what share of what the customer paid is profit?” Because the selling price is always larger than the cost, the margin percentage is always smaller than the markup percentage. A business that targets a 40% margin but applies a 40% markup will consistently underprice. This calculator shows both at once so the gap is impossible to miss.
| Markup | Selling price (cost $40) | Margin |
|---|---|---|
| 25% | $50 | 20% |
| 50% | $60 | 33.3% |
| 100% | $80 | 50% |
Choosing a markup
A markup has to cover more than the cost of the item itself. Overheads such as rent, wages, packaging, payment processing, returns, and shipping all come out of the gross profit, so a markup that merely looks healthy can still leave nothing behind. Retailers commonly work backwards: decide the margin the business needs to stay viable, then convert that into the markup that produces it. To convert, use markup = margin ÷ (100 − margin) × 100 — a 50% margin needs a 100% markup. Also consider what the market will bear; a mathematically ideal price that no one pays generates no profit at all. Use this tool to test several markups quickly and see the margin each one yields.
Worked examples
Standard
Inputs: $40 cost · 50% markup
Result: $60 price · 33.3% margin
Double
Inputs: $50 cost · 100% markup
Result: $100 price · 50% margin
No markup
Inputs: $80 cost · 0% markup
Result: $80 price · 0% margin
Glossary
- Markup
- Profit expressed as a percentage of the cost price.
- Margin
- Profit expressed as a percentage of the selling price.
- Cost price
- What you pay for an item before adding any profit.
- Gross profit
- Selling price minus cost price, before overheads.
Related reading
Frequently Asked Questions
Why use Markup Calculator?
- Calculates selling price from cost and markup percentage
- Shows the profit in currency terms
- Reports the resulting profit margin alongside the markup
- Makes the markup-versus-margin difference explicit
Common use cases
- Price a product from its cost with a target markup
- Check what margin a given markup actually delivers
- Compare supplier quotes at a consistent markup
- Set retail prices for a shop or online store
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