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Markup Calculator

Selling price and profit from markup.

Business & PricingUpdated 2026-04-05• Author: CalcDock Team, Business finance editor• Reviewed by: CalcDock Team, Editorial review: markup vs margin formulas (Apr 2026)

The Markup Calculator helps retailers, wholesalers, and service businesses set prices by calculating the markup applied to cost. Enter your cost and desired markup percentage to find the selling price and profit — or enter the cost and price to calculate the implied markup. Unlike margin (which is profit as a percentage of selling price), markup is profit as a percentage of cost. Understanding the distinction helps you set prices that meet both your revenue goals and your competitive positioning in the market.

When this calculator helps most

Use for cost-plus pricing: “if I mark up cost by 40%, what price and profit do I get?” or to infer markup from shelf price and landed cost.

What each input means

Cost — Fully loaded unit cost you wish to recover plus profit. (your currency)
Markup % — Profit as a percent of cost — not of selling price. (%)
Selling price — Used when backing into implied markup from price and cost. (currency)

Input mistakes to avoid

•Markup % is on cost: price = cost × (1 + markup%).
•Do not add margin% and markup% — they use different denominators.

Markup Calculator

Cost

Markup Percentage

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Formula

Selling Price = Cost × (1 + Markup/100) | Markup % = (Price − Cost) / Cost × 100

Examples

$50 Cost with 80% Markup

Find the selling price for an item costing $50 with an 80% markup.

→ Selling price: $90, Profit: $40, Margin: 44.4%

Clothing Store: $35 Cost, Target 120% Markup

A retailer buys a garment for $35 and wants a 120% markup.

→ Selling price: $77, Profit: $42

Find Markup from Cost and Price

A product costs $25 and sells for $60. What is the markup percentage?

→ Markup: 140%, Profit: $35, Margin: 58.3%

Wholesale to Retail: $200 Wholesale

A retailer purchases an item for $200 wholesale and applies a 50% markup.

→ Selling price: $300, Profit: $100, Margin: 33.3%

How to read your results

→Selling price = cost × (1 + markup%) when markup is applied once to cost.
→Same dollar profit yields lower margin % than markup % because margin uses price as base.
→Cost-plus ignores demand — pair with competitor checks for real-world pricing.

What this result means

Selling price and profit follow from your stated cost-plus rule — demand and competition still validate the price.

Common Pitfalls

⚠️Quoting “50% markup” when you mean 50% margin — the math and price differ.
⚠️Ignoring shrink, returns, and payment fees in the cost base.
⚠️Using industry markup norms without checking your own overhead.

Tips

✓Always verify your markup gives you sufficient gross margin to cover operating expenses.
✓Factor in return rates, shrinkage, storage, and overhead when setting markup — COGS alone is not the full cost.
✓For e-commerce, add payment processing fees (typically 2–3%) to your effective cost before calculating markup.
✓High-demand, low-competition products can command larger markups; compare to competitor pricing regularly.

How to check your results

✓Profit = price − cost; implied markup = profit/cost.

Warnings & Limitations

⚠️Predatory or regulated markets may cap markups — verify local rules.

What this calculator does not tell you

–Equivalent margin on selling price — convert with margin calculator when talking to finance.
–Channel fees, shrink, or returns — bake into cost if you need all-in economics.

Frequently Asked Questions

What is markup?

Markup is the amount added to the cost of a product to set its selling price. Markup % = (Selling Price − Cost) / Cost × 100. It is expressed as a percentage of the cost, not the selling price.

How is markup different from margin?

Markup is profit divided by cost. Margin is profit divided by selling price. Example: Cost $100, Price $150, Profit $50. Markup = $50/$100 = 50%. Margin = $50/$150 = 33.3%. Same profit, different percentages.

What markup percentage should I use?

Typical markup ranges by industry: Retail apparel: 50–100%. Electronics: 10–30%. Jewelry: 100–200%. Restaurant food: 200–400%. Software/digital products: 200–1000%+. Always verify your markup covers all overhead, not just COGS.

How do I convert a margin percentage to a markup percentage?

Markup % = Margin % / (1 − Margin % / 100). Example: 40% margin → Markup = 40 / (1 − 0.40) = 40 / 0.60 = 66.7%.

What is cost-plus pricing?

Cost-plus pricing is a straightforward strategy where you add a fixed markup percentage to your cost to set the price. It is simple but does not account for market demand, competitor pricing, or perceived value.

Can markup be negative?

No — negative markup would mean selling below cost (a loss). However, selling below cost is sometimes intentional as a loss leader to attract customers, but it is not sustainable as a primary strategy.