Calculator inputs
Enter the product cost and the markup percentage to estimate the final selling price.
Your base cost before calculating margin, markup or profit.
Enter the percentage as a whole number, not a decimal. For example, enter 10 for 10%.
Controls rounding in the displayed result only; it does not change the underlying calculation.
Formula
selling price = cost + markup amount
Example: A $75 cost with a 40% markup gives a $30 markup amount and a $105 selling price.
Worked examples
Cost $50, markup 20% = selling price $60.00
Cost $75, markup 40% = selling price $105.00
Cost $180, markup 35% = selling price $243.00
When to use markup
Use markup when you start with cost and want to set a selling price. This is especially useful for product pricing, quoting, and checking whether a planned increase gives enough gross profit.
Markup calculator FAQ
How do I calculate selling price from markup?
Multiply cost by the markup percentage, divide by 100, then add that markup amount back to cost. This calculator handles both steps for you.
Is markup the same as margin?
No. Markup measures the increase from cost, while margin measures profit as a share of the selling price.
What should I compare after setting markup?
After estimating a selling price, use the Margin Calculator to check the resulting profit margin percentage.
Accuracy and use of results
CalculatorWorks aims to make calculations clear and practical. We use standard calculation methods where possible, explain assumptions in plain language, and encourage users to verify important results before relying on them.
Using markup for pricing decisions
Markup is the percentage added to cost to create a selling price. It is useful when you know the product, labour, or service cost and need a quick way to set a price that covers overhead and profit.
Markup is especially common in retail, ecommerce, trades, and service businesses. A simple markup can be useful, but pricing should also consider demand, competitor pricing, shipping, payment fees, returns, discounts, tax, and the minimum profit the business needs to stay healthy.
Example: If a product costs $80 and you apply a 50% markup, the markup amount is $40 and the selling price is $120. The gross profit is $40, but the profit margin is 33.33%, not 50%.
Markup vs margin
Markup and margin are often confused. Markup is based on cost. Margin is based on selling price. This difference matters because a 50% markup does not produce a 50% margin.
- Markup: profit as a percentage of cost.
- Margin: profit as a percentage of selling price.
- Selling price: cost plus the markup amount.
More markup questions
What is a good markup percentage?
There is no universal good markup. It depends on the industry, cost structure, demand, competition, and how much profit is needed after overheads.
Does markup include sales tax or VAT?
Usually markup is calculated before tax. Tax rules vary, so use a tax or VAT calculator separately if you need a final customer price.
Why is my margin lower than my markup?
Because markup is divided by cost, while margin is divided by selling price. The selling price is larger than the cost, so the margin percentage is lower.
Should I use markup or margin for business planning?
Use markup to set a price from cost. Use margin to understand profitability and compare performance across products.