Markup Calculator
$
100%
Selling Price$100.00
Profit$50.00
Margin50.00%
This markup calculator starts from your unit cost and a markup percentage to tell you what selling price to charge, how much profit each sale earns, and what that translates to as a profit margin. Markup is the amount added on top of cost expressed as a percentage of cost, which is how many retailers and tradespeople set their prices. Because markup and margin describe the same profit from two different bases, the tool also reports the equivalent margin so you can compare quotes consistently.
Formula
Price = Cost · (1 + markup%/100); Margin% = (Price − Cost) / Price · 100
- Cost
- Cost of the item per unit
- markup%
- Markup applied as a percentage of cost
- Price
- Resulting selling price
- Margin%
- Profit as a percentage of the selling price
How it works
- Enter your cost per unit and the markup percentage you want to apply. The calculator multiplies the cost by one plus the markup fraction to produce the selling price.
- It then subtracts cost from that selling price to show the profit per unit in currency terms.
- Finally it converts the result to a profit margin by dividing profit by the selling price, so you can see the same deal stated as both a markup (cost-based) and a margin (price-based) figure.
Worked example
An item costs $100 and you want to apply a 50% markup.
- Selling price: 100 × (1 + 50 ÷ 100) = 100 × 1.5 = $150.
- Profit per unit: 150 − 100 = $50.
- Equivalent margin: 50 ÷ 150 × 100 = 33.33%.
Selling price is $150, profit is $50 per unit, and the equivalent profit margin is 33.33%.
Frequently asked questions
- What is the difference between markup and margin?
- Markup measures profit as a percentage of cost, while margin measures the same profit as a percentage of the selling price. A 50% markup on a $100 cost gives a $150 price, which is only a 33.33% margin because the larger price is the denominator.
- How do I pick the right markup percentage?
- Choose a markup that covers your overhead and target profit after the cost of goods. Many retailers use a keystone markup of 100% (doubling cost), but the appropriate figure depends on your category, competition, and operating expenses.
- Can markup ever exceed 100%?
- Yes. Markup has no upper limit because it is based on cost; a 300% markup quadruples the price. Margin, by contrast, can only approach but never reach 100%, since profit can never exceed the selling price itself.
- Does this calculator include taxes or discounts?
- No. It computes the pre-tax selling price from cost and markup only. Sales tax, promotional discounts, and shipping are not applied, so treat the result as your list price before any adjustments.