Markup Calculator
Calculate selling price from cost and markup percentage, or find the markup percentage between cost and selling price.
Did this tool work for you?
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
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.
Learn more from an authoritative source:
InvestopediaCommission Calculator
Calculate sales commission earnings, total payout, and take-home pay from a commission-based or mixed salary structure.
Depreciation Calculator
Calculate annual depreciation of an asset using straight-line or declining balance methods. Useful for accounting, tax, and business planning.
NPV Calculator
Calculate Net Present Value (NPV) of an investment with an initial cost and up to 5 years of projected cash flows.
Payback Period Calculator
Calculate how many years it takes to recover an initial investment from annual cash inflows.
Inflation Calculator
Calculate the future value of money adjusted for inflation, or find the real value of a past amount in today's dollars.
GST Calculator
Calculate GST instantly — add GST to a base price or remove GST from a GST-inclusive price. Shows CGST, SGST, and IGST split.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →