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Markup Calculator

Set a selling price from cost and markup, or work out the markup and margin of an existing price.

Updated

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Selling price
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Profit per unit
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Gross margin
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Markup is the percentage added on top of cost to reach a selling price. Use this tool to price products consistently and to see how markup translates into profit margin.

How to use the Markup Calculator

  1. 1 Choose whether you know the markup or the selling price.
  2. 2 Enter the cost and the markup percentage (or price).
  3. 3 Review the price, profit per unit and the equivalent margin.

Formula

Price  = Cost × (1 + Markup ÷ 100)
Markup = (Price − Cost) ÷ Cost × 100
Margin = (Price − Cost) ÷ Price × 100

Worked examples

Retail pricing

Input: Cost $40, markup 50%

Result: Price $60

Profit $20, margin 33.3%

Check a price

Input: Cost $25, price $40

Result: Markup 60%

Margin 37.5%

Markup vs. margin

Both describe the same profit but use a different base. Markup divides profit by cost; margin divides profit by price. A 100% markup is only a 50% margin. Confusing the two is one of the most common pricing mistakes in small businesses.

Markup Margin
25% 20%
50% 33.3%
100% 50%
200% 66.7%

Frequently asked questions

What is a typical retail markup?

It varies by industry: many retailers use 50–100% (keystone pricing doubles the cost), while groceries often run much lower.

How do I convert markup to margin?

Margin = Markup ÷ (100 + Markup) × 100. A 60% markup is 60 ÷ 160 × 100 = 37.5% margin.

Can markup be over 100%?

Yes. Any price more than double the cost is a markup above 100%. Margin, however, can never reach 100%.

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