Markup Calculator
Calculate markup amount, markup percentage, selling price, profit, and margin using cost price, selling price, or a desired markup percentage.
Calculate Markup
Enter your values to calculate markup, margin, profit, and selling price.
Formula
Markup amount:
Markup percentage:
Selling price from desired markup:
Profit margin:
Markup compares profit to cost price, while margin compares profit to selling price.
Understanding Markup
Markup is the amount added to a product's cost price to create the final selling price. It is commonly used by retailers, ecommerce sellers, freelancers, and service businesses when setting prices.
Common use cases
- Setting retail prices
- Calculating product profit
- Comparing markup and margin
- Checking ecommerce pricing
- Planning service-based pricing
How to calculate markup
Subtract the cost price from the selling price to find the markup amount. Then divide the markup by the cost price and multiply by 100 to get the markup percentage.
Business insight
Many businesses focus on markup when setting prices, but customers never see your markup. Quietly, profit margin is often the more important number because it shows how much of each sale you actually keep.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost price of a product or service to determine the selling price. Businesses use markup to cover expenses and generate profit.
How do I calculate markup percentage?
To calculate markup percentage, subtract the cost price from the selling price, divide the result by the cost price, and multiply by 100. This shows how much the selling price exceeds the original cost.
What is the difference between markup and margin?
Markup is calculated using the cost price as the starting point, while profit margin is calculated using the selling price. Although the two measurements are related, they will usually produce different percentages.
Why is markup important?
Markup helps businesses set prices that cover costs and generate profit. Understanding markup can improve pricing decisions, profitability, and long-term business performance.
Can markup be negative?
Yes. A negative markup occurs when a product or service is sold below its cost price, resulting in a loss. Businesses may occasionally do this during promotions, stock clearances, or competitive pricing campaigns.
What is the markup on a product that costs 50 and sells for 80?
The markup amount is 30. The markup percentage is 60%, while the profit margin is 37.5%. This example highlights why markup and margin are different measurements even when they use the same prices.
Can I calculate a selling price from a desired markup percentage?
Yes. Select "Cost price + desired markup %" and enter your cost price and target markup percentage. The calculator will estimate the selling price needed to achieve that markup.