Daily Figures Edition No Sign-Up • Free Forever Vol. XII — No. 204
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Money — Pricing

Markup Calculator

Enter your cost and markup percentage to get the selling price, the profit per item, and the profit margin.

Filed by The Statistics Desk  |  Method: price = cost × (1 + markup%)
Selling price
—
Cost plus your markup.
Readout
Profit per item—
Markup—
Profit margin—
Cost—
Show our math
Enter your figures above to see the step-by-step working.
Markup is on cost; margin is on price — they differEverything computed client-side — nothing leaves this page

How the Markup Calculator Works

Markup is how much you add to an item’s cost to set its selling price, expressed as a percentage of the cost. The calculator multiplies the cost by one plus the markup, giving the price, and then works out the profit and the profit margin. Enter your cost and markup to see all three.

Markup and margin are not the same thing. Markup is the profit as a percentage of cost; margin is the same profit as a percentage of the selling price. A 50% markup is only a 33.3% margin, because the price is the larger number.

price = cost × (1 + markup%)  ·  margin = profit ÷ price

Frequently Asked Questions

What is the difference between markup and margin?

Markup measures profit against cost; margin measures the same profit against the selling price. Because the price is larger than the cost, the margin percentage is always smaller than the markup percentage.

How do I calculate selling price from cost and markup?

Multiply the cost by one plus the markup as a decimal. A $40 item with a 50% markup sells for $40 × 1.5 = $60.

What markup should I use?

It depends on your industry, overheads and competition. Retail markups often run from 50% to over 100%. Work back from the profit margin you need after all costs, not just the item cost.

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