Finance tool
Markup CalculatorSelling Price · Gross Profit · Margin %
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Instant results
Step-by-step breakdown

Use this free markup calculator to find the right selling price for any product or service. Enter your cost and markup percentage to get the selling price, gross profit, and margin — or enter the cost and selling price to discover the exact markup percentage.

Results appear instantly in both modes, with a full step-by-step breakdown showing every formula and substituted value.
Pricing Details
Calculation mode
Cost price ($)
Markup (%)
With a 40.00% markup on a $50.00 cost, the selling price is $70.00, generating $20.00 in profit — a 28.57% gross margin.
Selling Price
$70.00
$50.00 cost + 40.00% markup = $70.00
$70.00
Selling Price
40.00%
Markup %
$20.00
Gross Profit
Cost 71%Profit 29%
Selling Price$70
Cost — $50.00 (71%)
Profit — $20.00 (29%)
Getting started
How to use this markup calculator

This tool quickly calculates selling prices and margins based on standard pricing formulas. It works in two directions depending on what information you have.

1
Choose your mode
Select "Cost + Markup %" to determine a selling price. Select "Cost + Sell price" if you already know the market price and need to determine your markup percentage.
2
Enter your base cost
Input the total cost of the product. This should ideally include materials, direct labor, and a portion of allocated overhead to ensure accurate profitability tracking.
3
Enter markup or selling price
Input your target markup percentage (e.g. 50 for a 50% markup) or the final selling price you intend to charge customers.
4
Analyze the result
The tool instantly calculates the missing variable, your gross profit in dollars, and your true profit margin percentage. The chart visually breaks down what portion of the selling price goes to cost versus profit.
The calculation
Step-by-step calculation breakdown

Here is exactly how the calculator derived your results using standard pricing formulas. Each step shows the formula and the substituted values.

1
Apply markup to cost price
Selling Price = Cost * (1 + Markup% / 100) = $50.00 * (1 + 40% / 100) = $50.00 * 1.4000
Selling Price = $70.00
2
Calculate gross profit
Profit = Selling Price - Cost = $70.00 - $50.00
Gross Profit = $20.00
3
Calculate profit margin %
Margin % = (Profit / Selling Price) * 100 = ($20.00 / $70.00) * 100
Margin = 28.57%
Examples
Example markup scenarios

Three common pricing scenarios calculated with exact numbers. Use these as a reference point, then adjust the calculator above to match your own situation.

Retail product
Standard 80% markup
$25 cost · 80% markup
$45/item
$20 profit · 44.4% margin
Competitive pricing
Finding markup from price
$120 cost · $180 selling price
50% markup
$60 profit · 33.3% margin
Service business
High margin consulting
$200 cost · 150% markup
$500/sale
$300 profit · 60% margin
Understanding pricing
Markup vs. Profit Margin explained

Markup and margin describe the exact same dollar profit using different reference points. Confusing the two is one of the most common and costly mistakes in retail and service pricing.

Markup is profit expressed as a percentage of your cost. It represents how much you add to the cost to get the final price. This is typically used internally when setting prices.

Margin is profit expressed as a percentage of your selling price. It represents how much of every dollar of sales you get to keep. This is the metric investors and accountants care about.

Markup to margin conversion table

Because markup uses a smaller denominator (cost) than margin (selling price), the markup percentage will always be higher than the margin percentage for any profitable sale.

Markup %Equivalent Margin %Multiplier (Cost × N)
25%20.0%1.25
33%24.8%1.33
50%33.3%1.50
100%50.0%2.00
150%60.0%2.50
200%66.7%3.00
Strategy
Pricing strategy tips for getting markup right

Applying standard markup formulas correctly is just the mechanics. Implementing a sustainable pricing strategy requires avoiding these common pitfalls.

Know your true landed cost
Your markup should cover product cost plus inbound shipping, packaging, tariffs, and direct handling labor. If you only apply markup to the supplier invoice cost, your real margins will bleed out through logistics and operations.
Plan for promotions in advance
If your business model relies on running frequent 20% off sales, you must build that into your base markup. A product that needs a 40% margin to be profitable must be marked up aggressively enough so that the discounted price still clears the 40% threshold.
Review markup when supplier costs change
A fixed selling price paired with rising supplier costs silently and rapidly erodes your margin. A 10% cost increase on a 50% markup product reduces the markup to just 36.4%. Review your pricing immediately whenever vendor costs change.
FAQ
Frequently asked questions
Q
What is markup in pricing?
Markup is the percentage added to a product's cost to arrive at its selling price, expressed as a percentage of the cost. A 50% markup on a $20 item means you add $10, resulting in a $30 selling price. Markup is always based on cost, not on the selling price.
Q
What is the markup formula?
Selling Price = Cost * (1 + Markup% / 100). To find markup percentage: Markup% = ((Selling Price - Cost) / Cost) * 100. To find cost from selling price and markup: Cost = Selling Price / (1 + Markup% / 100).
Q
What is the difference between markup and profit margin?
Markup is profit as a percentage of cost. Profit margin is profit as a percentage of the selling price. A 50% markup equals a 33.3% profit margin. Markup is always higher than margin for the same product.
Q
What is a typical markup percentage by industry?
Retail clothing 100-200%, electronics 10-30%, grocery 5-25%, restaurant food 200-300%, professional services 50-100%+, software 200-500%+.
Q
How do I calculate selling price from cost and markup?
Multiply the cost by (1 + markup% / 100). For a $40 product with 75% markup: $40 * 1.75 = $70 selling price. Use the Cost + Markup % mode in the calculator above for instant results.
Related tools
Related pricing and finance tools

For deeper analysis of business profitability, including fixed and variable costs, try these related calculators.

Profit Margin CalculatorGross Profit CalculatorProfit CalculatorMargin vs Markup CalculatorBreak-Even CalculatorCommission Calculator