Business

Markup Calculator

Calculate markup percentage and selling price

Calculator

Selling Price
$70.00
Profit: $20.00 per unit
Markup
40.00%
Cost based
Margin
28.57%
Revenue based

Price Breakdown

Cost$50.00
+ Markup (40.0%)+$20.00
Selling Price$70.00

Markup vs Margin

Markup = (Profit / Cost) × 100

Margin = (Profit / Selling Price) × 100

How to Use

Calculate markup and selling price

1

Enter cost

Input your product cost

2

Enter markup or price

Input desired markup % or selling price

3

Calculate

See selling price, markup, and profit

4

Compare with margin

See equivalent margin percentage

Markup Formula

Markup% = (Price - Cost) / Cost × 100
Selling Price = Cost × (1 + Markup%)

Markup is the percentage increase from cost to price. Always based on cost, not selling price.

Frequently Asked Questions

Markup is based on cost: (Price - Cost) / Cost. Margin is based on price: (Price - Cost) / Price. A $50 cost sold for $75: markup = 50%, margin = 33%. Same profit, different percentages. Markup is always higher than margin.

Selling Price = Cost × (1 + Markup%). With 40% markup on $50 cost: $50 × 1.4 = $70. Or: $50 + ($50 × 0.4) = $50 + $20 = $70.

Varies by industry: Groceries 10-30%, Clothing 100-300%, Electronics 30-50%, Restaurants 300% on food. Consider competitors pricing, perceived value, and operating costs. Higher markup = fewer sales needed to break even.

Markup = Margin / (1 - Margin). 25% margin → 25 / (1-0.25) = 25/0.75 = 33.3% markup. Conversely, Margin = Markup / (1 + Markup). 50% markup → 50 / (1+0.5) = 33.3% margin.

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