Free Business Calculator
Markup Calculator
Calculate markup percentage, selling price, profit, and profit margin quickly from your product cost and selling price.
Enter your numbers
Enter your product cost and selling price to calculate profit, markup, and profit margin.
The amount it costs you to produce or buy the product.
The price your customer pays.
Results
Enter your cost and selling price to see the results.
What is markup?
Markup is the amount added to the cost of a product or service to determine its selling price. It is commonly expressed as a percentage of cost.
Businesses use markup when setting prices because it shows how much the selling price exceeds the underlying cost.
How to calculate markup
First subtract the cost from the selling price to calculate profit. Then divide that profit by the cost and multiply by 100.
Profit = Selling Price − Cost
Markup (%) = Profit ÷ Cost × 100
Markup calculation example
Suppose a product costs $60 and is sold for $100. The profit is $40.
Cost: $60
Selling Price: $100
Profit: $40
Markup: 66.67%
Profit Margin: 40%
Markup vs. profit margin
Markup and profit margin both describe profitability, but they use different reference amounts.
Markup measures profit as a percentage of cost, while profit margin measures profit as a percentage of revenue or selling price.
MARKUP
Based on cost
Markup compares your profit with the original cost of the product or service.
PROFIT MARGIN
Based on revenue
Profit margin compares your profit with the final selling price or revenue.
How to calculate selling price from markup
If you know your product cost and desired markup percentage, you can estimate the selling price by multiplying cost by one plus the markup rate.
Selling Price Formula
Selling Price = Cost × (1 + Markup %)
For example, a product costing $80 with a 50% markup would have a selling price of $120.
When is a markup calculator useful?
Retail Pricing
Set selling prices based on wholesale or inventory costs.
eCommerce
Compare product costs with selling prices and target markup.
Service Pricing
Estimate prices after accounting for labor or service delivery costs.
Pricing Analysis
Compare different cost and price combinations before changing your pricing strategy.
Related calculators
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Profit Margin Calculator →Break-Even Calculator
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Break-Even Calculator →ROI Calculator
Calculate return on investment, profit or loss, and investment performance.
ROI Calculator →Discount Calculator
Calculate discount savings and the final price after a percentage discount.
Discount Calculator →Frequently Asked Questions
How do you calculate markup percentage?
Subtract cost from selling price to find profit. Then divide profit by cost and multiply by 100.
What does a 50% markup mean?
A 50% markup means the amount added to the cost equals 50% of that cost. For example, a $100 item with a 50% markup would have a selling price of $150.
Is a 50% markup the same as a 50% profit margin?
No. Markup is calculated from cost, while profit margin is calculated from selling price. A 50% markup produces a lower profit margin than 50%.
How do I calculate selling price from cost and markup?
Convert the markup percentage to a decimal, add 1, and multiply the result by cost. For example, $100 × 1.50 gives a $150 selling price at a 50% markup.
Can markup be more than 100%?
Yes. A markup above 100% simply means the amount added to cost is greater than the original cost. Whether that pricing is appropriate depends on the product, market, expenses, and business strategy.
This markup calculator provides simplified estimates for general business and educational purposes. Actual pricing decisions may need to account for taxes, shipping, payment processing fees, overhead, discounts, returns, and other expenses.