Markup Calculator
Calculate selling price, profit, and margin percentage from cost and markup, then check whether the price leaves enough room for overhead and profit.
Selling price
Formula
Selling Price = Cost * (1 + Markup / 100)
Profit = Selling Price - Cost
Margin = Profit / Selling Price * 100 How the formula works
Markup starts with cost and adds a percentage on top. A 50% markup means you add half of the cost to the cost itself.
The calculator also converts the result into margin because selling price and profit are easier to judge when you know what percentage of the final price is profit.
Complete example
A product costs $100 to buy, package, and prepare for sale. You apply a 50% markup.
- Cost: $100
- Markup: 50%
- Selling price: $100 * (1 + 50 / 100) = $150
- Profit: $150 - $100 = $50
- Margin: $50 / $150 * 100 = 33.33%
The price is $150, but the margin is not 50%. The 50% markup creates a 33.33% margin because margin uses selling price as the denominator.
Markup is not the same as margin. Read markup vs margin for the practical difference.
When to use this calculator
- Set a selling price from a known cost.
- Check what margin a markup percentage actually creates.
- Compare pricing options before listing a product or quoting a job.
- Translate supplier cost changes into updated prices.
How to interpret the results
Selling price is the amount you charge. Profit is the difference between selling price and cost. Margin shows how much of the selling price remains after the cost entered.
If the margin looks too low, increase markup, reduce cost, or check whether your cost input includes items that should be measured separately.
Common mistakes
- Expecting 50% markup to produce 50% margin.
- Forgetting to include packaging, payment fees, or shipping costs in cost.
- Using markup without checking whether the final margin covers overhead.
- Applying the same markup to every product even when fees, return rates, or fulfillment costs differ.
- Raising markup without checking whether the final price is still competitive.
Related tools
- Profit Margin Calculator: check margin from revenue and cost.
- Product Pricing Calculator: price products with fees, shipping, discounts, and target margin.
- Gross Profit Calculator: calculate gross profit from revenue and COGS.
- Discount Margin Calculator: test whether a discount still leaves profit.
FAQ
What is markup?
Markup is the percentage added to cost to set a selling price. It compares profit to cost, not to the final selling price.
How do you calculate markup price?
Multiply cost by one plus the markup percentage divided by 100.
Is markup the same as margin?
No. Markup compares profit to cost, while margin compares profit to selling price.
Can markup be 100%?
Yes. A 100% markup means the selling price is double the cost.
What markup gives a 50% margin?
A 100% markup gives a 50% margin because the selling price is twice the cost and profit is half of the selling price.
Should I include overhead in cost?
Include overhead when you want the markup to cover more than direct product cost. Keep the cost definition consistent when comparing products.
Why does the calculator show margin too?
Margin is often easier to compare across products and reports. Showing both markup and margin helps avoid pricing mistakes.
Can markup be used for services?
Yes. For services, cost may include contractor labor, tools, software, subcontractors, or other direct delivery costs.
Disclaimer
This calculator is for general business planning and educational use. It does not replace accounting, tax, or financial advice.