Markup percentage
See how much profit you add on top of the original cost, expressed as a percentage of that cost.
Free Business Calculator
Markup Calculator
Calculate markup percentage, profit, margin, selling price and cost from the figures you already know. Use reverse calculation modes to price products with confidence.
Instant calculations
Markup and margin
Reverse calculations
Calculate markup your way
Find markup from cost and selling price, calculate a selling price from target markup, or work backwards to find the original cost.
Enter your figures
Choose a calculation mode, select a currency and enter the values you know.
What This Tool Calculates
More than a basic markup calculator
Use one tool to calculate the markup you are currently making or reverse the formula to find the selling price or cost you need.
Target selling price
Enter your cost and desired markup to calculate the selling price needed before taxes or other additions.
Profit and margin
Compare the cash profit per item with the profit margin percentage based on the final selling price.
How It Works
How to use the markup calculator
Choose the calculation that matches the figures you know, then review both the headline result and the supporting profit details.
Choose a mode
Find your current markup, calculate a selling price, or reverse the formula to find cost.
Enter your figures
Add the cost, selling price or target markup required by the selected calculation mode.
Add quantity
Enter the number of identical items to calculate total cost, total revenue and total profit.
Review the breakdown
Compare markup, margin and profit so you understand exactly how the result was calculated.
Formulas
Markup calculator formulas
Markup starts with the difference between selling price and cost. The same figures can also be used to calculate profit margin.
How the calculation works
Profit is the selling price minus the cost price. Markup then compares that profit with cost, which shows how much was added on top of the original cost.
When you already know the markup you want, the calculator adds that percentage of cost to the cost price to find the required selling price.
The reverse cost mode divides the selling price by one plus the markup rate. This shows the cost that would produce the selected markup at that selling price.
Core markup formulas
Use cost and selling price from the same unit or period.
Profit = Selling Price − Cost
Markup = (Profit ÷ Cost) × 100
Selling Price = Cost × (1 + Markup ÷ 100)
Cost = Selling Price ÷ (1 + Markup ÷ 100)
Markup uses cost as its base
Margin uses selling price as its base
Markup vs Margin
Markup and profit margin are not the same
Both percentages use the same profit figure, but they compare that profit with different starting values.
Markup
Markup compares profit with cost. A product that costs $60 and sells for $100 makes $40 profit, which is a 66.67% markup on cost.
$40 ÷ $60 × 100 = 66.67% markup
Margin
Margin compares profit with selling price. The same $60 cost and $100 selling price produces a 40% profit margin.
$40 ÷ $100 × 100 = 40% margin
Do not use markup and margin as interchangeable percentages
A 50% markup does not create a 50% margin. For example, adding a 50% markup to a $100 cost gives a $150 selling price and $50 profit, but the profit margin is only 33.33% because margin is measured against the $150 selling price.
Examples
Markup calculation examples
These examples show how the calculator works when solving for markup, selling price or cost.
Cost $80, sell for $120
The profit is $40. Divide that profit by the $80 cost to calculate markup.
($120 − $80) ÷ $80 × 100 = 50% markup
Cost $50, target 60% markup
Add 60% of the cost to the original cost to find the selling price.
$50 × (1 + 0.60) = $80 selling price
Sell for $150 at 50% markup
Divide selling price by 1.50 to work backwards to the cost price.
$150 ÷ 1.50 = $100 cost
FAQs
Frequently asked questions
Clear answers to common questions about markup, margin, selling price and profit calculations.
Subtract cost from selling price to find profit. Divide profit by cost, then multiply by 100. For example, a $100 selling price and $60 cost gives $40 profit and a 66.67% markup.
Convert the markup percentage to a decimal, add 1, then multiply by cost. A $100 cost with 25% markup becomes $100 × 1.25 = $125.
Markup divides profit by cost, while margin divides profit by selling price. Because the base numbers are different, the percentages are different even when profit is identical.
Yes. A markup above 100% simply means the profit is greater than the original cost. For example, a $50 cost sold for $125 produces $75 profit and a 150% markup.
Yes. Negative markup happens when selling price is below cost. The calculator will show a negative markup, negative profit and negative margin for that situation.
Only when you include those amounts in your cost figure. For a more realistic pricing decision, use a cost that includes the direct expenses you want the markup to cover.
Yes. Enter the number of identical units in the quantity field. The calculator will show total cost, total revenue and total profit while keeping the per-item markup and margin percentages unchanged.
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