Business calculator

Markup Calculator

Turn product cost and markup into a selling price, profit, and margin.

Your inputs

Result

Selling price
$90.00
Profit
$30.00
Margin
33.33%

Results are estimates for planning and educational purposes.

What Is Markup?

Markup measures profit relative to cost. It is useful when a price is set by adding a standard percentage to the amount paid to make or buy an item.

How Do You Calculate a Price From Markup?

Multiply cost by one plus the markup rate. Include all per-unit costs that should be recovered; leaving out packaging or fulfillment can make the apparent profit too high.

Why Is Markup Higher Than Margin?

Markup uses the smaller cost amount as its denominator, while margin uses the final selling price. The figures describe the same profit from different perspectives.

Formula

  • Selling price = Cost × (1 + Markup ÷ 100)
  • Margin = Profit ÷ Selling price × 100

Example

A $60 cost with 50% markup gives a $90 selling price and a 33.33% margin.