Markup Calculator
Calculate selling price from cost and markup percentage.
Markup determines how much you add to a product's cost to set its selling price, directly affecting your profitability and competitiveness. This calculator computes markup percentage from cost and selling price, the selling price from cost plus desired markup, and the cost from selling price and known markup.
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How to Calculate Markup
- Enter the cost price — what you pay for the product or service.
- Enter the selling price or markup percentage — either the price you sell at or the markup you want to apply.
- Click Calculate — the tool shows markup percentage, profit per unit, and selling price.
- Compare pricing — try different markups to find the optimal balance between competitiveness and profitability.
Frequently Asked Questions
What is markup? ▼
Markup is the percentage added to the cost price to determine the selling price. It is calculated as: ((Selling Price − Cost) ÷ Cost) × 100. A product that costs $40 and sells for $60 has a 50% markup.
What is the difference between markup and profit margin? ▼
Markup is based on cost, while margin is based on selling price. A $40 cost with $60 selling price: markup = (20÷40) × 100 = 50%. Margin = (20÷60) × 100 = 33.3%. The same transaction, but different reference points. Margin is always lower than markup for the same deal.
What is a standard markup percentage? ▼
Markups vary by industry: grocery stores use 5–25%, clothing retail 50–100%, restaurants 200–400% on food, jewellery 50–100%, and software/digital products can exceed 500%. The appropriate markup depends on competition, perceived value, and operating costs.
How do I convert markup to margin? ▼
Margin = Markup ÷ (1 + Markup). For a 50% markup (0.50): Margin = 0.50 ÷ 1.50 = 0.333 or 33.3%. Conversely, Markup = Margin ÷ (1 − Margin). These conversions are essential for accurate financial reporting.
What is cost-plus pricing? ▼
Cost-plus pricing means adding a fixed markup percentage to the total cost of production to set the selling price. It is simple and ensures every product covers its costs plus a profit. However, it ignores market demand and competitor pricing, so it works best for B2B and custom work.
Is my pricing data stored? ▼
No. All calculations run locally in your browser. No cost or pricing data is sent to any server.