Markup Calculator
Turn a known cost and desired markup percentage into a selling price and gross profit estimate.
Start with the cost of an item or service and enter the markup percentage you want to apply. The calculator estimates the selling price and helps you see how markup differs from profit margin. For real pricing decisions, use a cost figure that reflects the expenses you actually want the sale to cover, then compare the result with your target margin and other transaction costs.
Turn a known cost into a selling price
Markup measures the amount added to cost. Enter your cost and desired markup percentage to estimate the selling price and gross profit before other expenses.
The markup formula
selling price = cost × (1 + markup rate)
If an item costs $50 and the markup is 40%, the added amount is $20 and the selling price is $70.
Markup is not the same as margin
That $20 profit on a $70 selling price is a 28.57% margin, not a 40% margin. Markup divides profit by cost; margin divides profit by revenue.
Use a realistic cost base
For a product, cost may include more than the supplier price. Depending on the business, freight, packaging, duties, marketplace fees, waste, or direct labour may need to be considered before deciding whether a markup produces enough profit.
Markup can vary by product
Businesses do not necessarily use one markup everywhere. Competitive pricing, inventory turnover, support requirements, spoilage, and customer expectations can all affect the appropriate markup.
Frequently asked questions
What markup gives a 50% margin?
A 50% margin requires a 100% markup: a $50 cost would need a $100 selling price.
Can markup be negative?
Yes. Selling below cost produces a negative markup and a loss on the direct cost entered.