Finance

Markup Calculator

Calculate markup percentage, selling price, or product cost from any two known values.

Enter values above to calculate markup.

Advertisement

Markup Formulas

Markup %

Markup = (Price − Cost) / Cost × 100

Selling Price

Price = Cost × (1 + Markup / 100)

Cost

Cost = Price / (1 + Markup / 100)

What is markup and how is it used?

Markup is the core tool of retail and wholesale pricing. It defines the relationship between what you pay for a product and what you charge for it. Setting the right markup ensures every sale contributes to covering your overhead and generating profit, rather than simply recovering cost.

Unlike gross margin — which is measured against selling price — markup is measured against cost, making it the natural starting point when you know what something costs and need to set a price. This calculator solves all three markup scenarios so you can quickly check existing prices, set new ones, or reverse-engineer costs from price and margin targets.

Frequently asked questions

What is markup?
Markup is the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost. For example, if a product costs $50 and you sell it for $75, the markup is $25, or 50% of the $50 cost.
How do I calculate markup percentage?
Subtract the cost from the selling price to get the profit, then divide the profit by the cost and multiply by 100. For example, cost $50, selling price $75: profit = $25, markup = $25 / $50 × 100 = 50%.
What is the difference between markup and margin?
Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A 50% markup on a $50 cost gives a $75 price and a 33.3% margin. Margin is always lower than markup for the same transaction. Confusing the two is a common pricing mistake.
What markup percentage should I use?
The right markup depends on your industry, overhead costs, and competitive positioning. Retail clothing typically uses 100–300% markup. Electronics often use 5–25%. Restaurants markup food 200–500%. The goal is to cover all costs — including operating expenses beyond COGS — and achieve your target net profit.
How do I convert a markup percentage to a margin percentage?
Divide the markup percentage by 100 plus the markup percentage, then multiply by 100. For example, a 50% markup: 50 / (100 + 50) × 100 = 33.3% margin. Alternatively, use this site's Profit Margin Calculator to go the other direction — from margin to markup.
What happens if markup is too low?
If markup is too low, your selling price may not cover all costs — not just COGS, but also rent, salaries, marketing, and other overhead. Every unit sold at insufficient markup accumulates losses. Always calculate your break-even markup by factoring in all expenses, not just the direct cost of the product.

Related calculators