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How to Use This Markup Calculator
Enter your cost in the first field and your target markup percentage in the second field. Then click calculate to see the selling price, profit, and resulting margin percentage.
- Enter the cost of your product or service.
- Enter your target markup percentage.
- Click Calculate.
- Review the selling price, profit, and margin.
This is useful when you want to set prices consistently and make sure each sale generates enough profit.
Markup Formula
Profit = Selling Price − Cost
Markup % = (Profit ÷ Cost) × 100
Margin % = (Profit ÷ Selling Price) × 100
Markup tells you how much you add on top of cost. It is a common pricing method because it starts with your known cost and helps you set a target selling price quickly.
Example Markup Calculation
Imagine your cost is $100 and you want a markup of 50%.
- Cost: $100
- Markup: 50%
- Selling Price: $150
- Profit: $50
- Margin: 33.33%
This means you are adding $50 on top of cost and selling the item for $150.
What Is Markup?
Markup is the percentage added to cost to determine a selling price. It is one of the most common pricing methods used by retailers, wholesalers, freelancers, and service businesses.
Businesses often use markup because cost is usually easier to know than margin. Once you know your cost, you can apply a target markup percentage to create a selling price that generates profit.
Markup vs Margin
Markup and margin are related, but they are not the same. Markup is based on cost, while margin is based on selling price.
Because they use different starting points, the percentages will not match. For example, a 50% markup gives a 33.33% margin.
This difference matters because confusing markup and margin can lead to incorrect pricing. For a side-by-side comparison, use the Margin vs Markup Calculator.
Tips for Using Markup in Pricing
- Always know your true cost before applying markup.
- Use markup consistently across products or services where it makes sense.
- Review markup regularly when supplier costs change.
- Do not confuse markup with margin when setting pricing targets.
- Check whether your markup also leaves enough room to cover overhead and operating expenses.
Common Markup Examples
- $100 cost with 25% markup = $125 selling price
- $100 cost with 50% markup = $150 selling price
- $80 cost with 40% markup = $112 selling price
- $200 cost with 30% markup = $260 selling price
Related Calculators and Guides
Frequently Asked Questions
How do you calculate markup?
Markup is calculated as (Selling Price − Cost) ÷ Cost × 100. It shows how much you add on top of cost.
How do you calculate selling price from cost and markup?
Use this formula: Selling Price = Cost × (1 + Markup%). For example, a cost of $100 with a 50% markup gives a selling price of $150.
What is the difference between markup and margin?
Markup is based on cost, while margin is based on selling price. They are related but they are not the same percentage.
Why is markup important in pricing?
Markup helps businesses set prices above cost so they can make profit and cover overhead, labor, and operating expenses.
Can I use this markup calculator for products and services?
Yes. This calculator can be used for products, services, and most pricing situations where you know your cost and target markup percentage.