Markup Calculator
Calculate selling price from cost and markup percentage, or find the markup percentage between cost and selling price.
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How to use this calculator
Markup is applied to cost price. Gross margin = (Selling Price − Cost) / Selling Price × 100.
- 1
Enter the cost price (what you paid or it costs to make).
- 2
Enter the markup percentage you want to apply.
- 3
See the selling price, profit amount, and resulting gross margin percentage.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin (gross margin) is profit as a percentage of selling price. A 50% markup means you add 50% of cost as profit. That same item has a 33.3% margin. They describe the same profit in dollars but use different denominators.
What is a typical markup percentage by industry?
Retail clothing: 100–300%. Electronics: 10–30%. Restaurants: 200–400% on food items. Software: 50–80%. Jewellery: 50–200%. Industries with high overhead, perishability, or brand value typically have higher markups.
How do I find markup from cost and selling price?
Markup% = (Selling Price − Cost) / Cost × 100. Example: cost $40, selling $70 → markup = (70 − 40) / 40 × 100 = 75%.
What markup do I need to achieve a specific margin?
Markup% = Margin% / (1 − Margin% / 100). To achieve a 40% margin: markup = 40 / (1 − 0.40) = 40 / 0.60 = 66.7%. Use a target margin and work backward to set your selling price.
Markup vs margin — a pricing guide for businesses
How to use the markup
Use this markup to lling price from cost and markup percentage, or find the markup percentage between cost and selling price. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the markup works
The markup calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
Why markup and margin are not interchangeable
Confusing markup and margin is a common and costly pricing mistake. A 50% markup on a $100 item yields $150 selling price and $50 profit — a 33% margin. Saying "we work on 50% margins" when you mean 50% markup underestimates your actual margin requirements.
Setting competitive prices
Start with cost, apply your required markup to cover overheads and desired profit, then compare to market prices. If your cost-plus price exceeds the market price, you must reduce costs or accept a lower margin. Value-based pricing — charging what customers will pay — can support higher margins than cost-plus.
Volume discounts and tiered pricing
Bulk orders allow lower per-unit cost through economies of scale. Tiered pricing rewards higher volumes with lower unit prices while maintaining overall margin. Ensure your volume discount tiers still cover variable costs at minimum.
Markup: how it works
This free tool helps you plan and compare financial scenarios in seconds. Enter your figures, adjust the assumptions, and instantly see how different inputs affect the outcome — ideal for budgeting, benchmarking, and data-driven decision-making.
Who uses this tool?
Financial planners, accountants, students, and individuals use it to model scenarios before committing to major financial decisions. It is equally useful for quick sanity checks and detailed what-if analyses.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →