Markup Calculator
Set a selling price from cost and markup.
Results update as you type.
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How it works
Markup is the amount you add on top of what a product costs you to arrive at its selling price, stated as a percentage of that cost. The selling price shown here is the direct result of applying your markup, and it matters because pricing is where a business either builds in enough profit to survive or quietly gives it away. This markup calculator multiplies the cost by one plus your markup percentage to find the price, then reports the dollar profit and the margin that price produces. Markup is expressed against cost because that is the number a seller knows first — you buy or make something for a set amount and decide how much to add — which makes cost-plus pricing the most intuitive method for setting prices quickly. A markup calculator is especially useful for spotting that the resulting margin is always smaller than the markup, since margin is measured against the larger selling price. Retailers, distributors, tradespeople and makers use a markup calculator to price inventory consistently, ensure every item clears its costs, and keep pricing uniform across a catalog. Choosing a markup means balancing your target margin, your overhead, and what the market will actually pay, so the price both covers costs and stays competitive.
Price = cost × (1 + markup ÷ 100)
Cost is what you paid, and the markup percentage is how much you add relative to that cost. Dividing markup by 100 converts it to a decimal, and adding 1 keeps the original cost while layering the profit on top, so cost × (1 + markup ÷ 100) returns the full selling price. The profit is the difference between that price and the cost, and dividing profit by the price — not the cost — gives the resulting margin.
Source:Standard cost-plus pricing formula
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter cost and markup.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Selling price updates instantly as you type — no button to press.
Frequently asked questions
How do I choose the right markup?
Work backward from the margin you need to cover overhead and still profit, then check what competitors charge and what customers will pay. Common retail markups run from 50% on fast-moving goods to well over 100% on specialty or low-volume items; keystone pricing, a 100% markup that doubles cost, is a traditional starting point. Higher markups suit products with strong branding or little competition, while thin markups rely on volume to make money.
Why is the resulting margin lower than the markup?
Because the two are measured against different bases. Markup is the profit as a percentage of cost, while margin is the same profit as a percentage of the higher selling price. Since the price always exceeds the cost, dividing by the larger number yields a smaller percentage. A 50% markup produces a 33.3% margin; a 100% markup produces a 50% margin. Knowing the pairing prevents you from underpricing by confusing the two.
Is markup the same as profit?
No. Markup is a percentage that describes how much you add over cost, while profit is the actual dollar amount that addition puts in your pocket. A 50% markup on a $60 item adds $30 of profit and sets the price at $90. The percentage is a pricing rule you apply across products; the dollar profit is the concrete result on a single sale. Both matter, but they answer different questions.
How do I convert a target margin into a markup?
Divide the desired margin by one minus that margin, both as decimals. To hit a 40% margin, compute 0.40 ÷ 0.60, which is about 0.667, or a 66.7% markup. This is handy when you plan around margin — the profit you keep from revenue — but price using markup applied to cost. This tool does the reverse for you: enter a markup and it displays the margin that results, so you can adjust until the margin matches your goal.
Should the same markup apply to every product?
Usually not. A flat markup ignores differences in demand, competition, handling costs and turnover. Fast sellers can carry a lower markup because volume makes up for it, while slow-moving or premium items justify a higher one. Perishable or bulky goods may need extra markup to cover waste and storage. Vary the markup by product category so each item earns its keep, and use this tool to check the margin each choice produces.