Markup Calculator
Turn a product cost and a target markup percentage into a selling price, profit and margin.
%
20
28.57%
Formula
Examples
| Input | Result |
|---|---|
| Cost $50 with 40% markup | Price = $70, profit = $20, margin = 28.57% |
About this calculator
Markup is the amount added to the cost of a product to set its selling price, expressed as a percentage of the cost. A 40% markup means you add 40% of the cost on top of the cost. This is the basis of cost-plus pricing used widely in retail and wholesale.
Markup and margin are often confused. Markup is measured against cost, while margin is measured against the selling price, so the margin percentage is always lower than the markup for the same price. This calculator reports both so you can price products consistently and understand your true profitability.
Frequently asked questions
Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. For a given price, the margin percentage is always smaller than the markup percentage.
Base it on your costs, target margin, competitor pricing and overheads. Higher-overhead or lower-volume businesses generally need larger markups to stay profitable.
Yes. Divide the selling price by (1 + markup/100) to recover the original cost.
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