Markup Calculator

Markup is the amount added to cost to set a price, expressed as a percentage of the cost.

  • Last updated
  • Formula tested against reference values

Your numbers

Result

Selling price
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Calculating…

Profit per unit
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Profit margin
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How to use this calculator

  1. Enter or choose cost.
  2. Enter or choose markup.
  3. The selling price updates as you type. Use Copy result or Share to keep it.

Formula

Price=Cost×(1+Markup100)

Price = Cost × (1 + Markup ÷ 100)

Cost
what the item costs you
Markup
percentage added on top of cost

Worked example

  1. Price = 80 × 1.25 = 100.
  2. Profit = 100 − 80 = 20.
  3. Margin = 20 ÷ 100 = 20%.

A 25% markup on $80 gives a $100 price and a 20% margin.

What the result means

Convert between the two with: margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin). A 50% markup is a 33.3% margin; a 100% markup is a 50% margin.

Assumptions and limits

  • Taxes such as GST or VAT are added after pricing and are not included.

Questions

Is markup the same as margin?

No. Markup is profit divided by cost, margin is profit divided by price. The same sale always has a higher markup percentage than margin percentage.