Markup Calculator
Calculate selling price, profit, and margin from your cost and markup percentage. Enter your values above to see results instantly.
Markup Results
Based on your cost and markup percentage.
Selling Price
$70.00
Profit
$20.00
Margin: 28.57%
How to Calculate Markup Percentage
Markup pricing is the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost. Understanding markup is essential for any business that sells products or services, because it directly determines your profit on every sale.
The markup percentage tells you how much more than the cost you are charging. A 50% markup means you charge 50% more than what the item cost you. This calculator makes it easy to find the selling price, profit, and margin for any cost and markup combination.
Why is it useful?
- Pricing Strategy: Set prices that cover costs and hit your target profit.
- Profit Analysis: See exactly how much you earn on each unit sold. Pair it with our gross profit calculator to analyze overall profitability.
- Margin Comparison: Convert between markup and margin to compare with industry benchmarks.
- Ad Spend Efficiency: Combine markup data with our ROAS calculator to ensure your ad spend stays profitable.
- Wholesale to Retail: Quickly calculate retail prices from wholesale costs.
- Quote Preparation: Build accurate quotes by applying standard markups to project costs.
How It's Calculated
To calculate the selling price from a markup, you need the cost price and the markup percentage.
The formula
Selling Price = Cost x (1 + Markup% / 100)
Related formulas
- Profit = Selling Price - Cost
- Margin % = (Profit / Selling Price) x 100
- Markup % = (Profit / Cost) x 100
Example: 40% markup on a $50 item
- Selling Price = $50 x (1 + 40/100) = $50 x 1.40 = $70
- Profit = $70 - $50 = $20
- Margin = $20 / $70 x 100 = 28.57%
Markup vs. Margin: The Key Difference
This is the number one source of confusion in pricing. Markup and margin both describe profit, but they use different bases for the calculation. Getting them confused can lead to pricing errors that eat into your profits.
Markup is the profit expressed as a percentage of the cost. It answers: "How much more than my cost am I charging?"
Margin is the profit expressed as a percentage of the selling price. It answers: "What percentage of the selling price is profit?"
Here is a concrete example. You buy a product for $60 and sell it for $100. Your profit is $40.
- Markup = $40 / $60 x 100 = 66.67% (profit / cost)
- Margin = $40 / $100 x 100 = 40% (profit / selling price)
Same dollar profit, but the percentages are very different. Markup is always higher than margin for the same transaction. A 100% markup equals a 50% margin. A 50% markup equals a 33.33% margin. The higher the markup, the wider the gap between the two numbers.
Quick Reference: Markup to Margin Conversion
Use this table to quickly convert between common markup and margin percentages.
| Markup % | Margin % | $50 Cost | $100 Cost |
|---|---|---|---|
| 10% | 9.09% | $55.00 | $110.00 |
| 20% | 16.67% | $60.00 | $120.00 |
| 25% | 20.00% | $62.50 | $125.00 |
| 30% | 23.08% | $65.00 | $130.00 |
| 40% | 28.57% | $70.00 | $140.00 |
| 50% | 33.33% | $75.00 | $150.00 |
| 75% | 42.86% | $87.50 | $175.00 |
| 100% | 50.00% | $100.00 | $200.00 |
How to Calculate Markup in Excel
If you need to calculate markup for a list of products, use a spreadsheet. Here are the key formulas:
Selling price from cost and markup:
=A1*(1+B1/100)Markup percentage from cost and selling price:
=(B1-A1)/A1*100Where A1 is the cost price and B1 is either the markup percentage or the selling price. These formulas work in Google Sheets, Excel, and LibreOffice Calc.
Frequently Asked Questions
How do you calculate markup percentage?
Markup percentage is calculated by dividing the profit (selling price minus cost) by the cost, then multiplying by 100. The formula is: Markup % = ((Selling Price - Cost) / Cost) x 100. For example, if you buy something for $50 and sell it for $75, the markup is ($75 - $50) / $50 x 100 = 50%.
What is 20% markup on $100?
A 20% markup on $100 means you add 20% of the cost to the price. Selling Price = $100 x (1 + 20/100) = $100 x 1.20 = $120. Your profit is $20, and the margin is 16.67%.
What is 3.5% markup?
A 3.5% markup means you add 3.5% of your cost to the selling price. On a $200 item: $200 x 1.035 = $207. Your profit is $7. This is a very thin markup, common in high-volume industries like wholesale or commodity trading.
How to calculate an 80% markup?
Multiply the cost by 1.80. For a $50 item: $50 x 1.80 = $90. Your profit is $40. Note that an 80% markup does not equal an 80% margin. The margin in this case is $40 / $90 = 44.44%.
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