Markup Calculator
Calculate selling price, markup percentage, gross profit, and profit margin based on cost and markup.
Input Values
Markup Formula
Markup = (Selling Price - Cost) / Cost × 100%
Selling Price = Cost × (1 + Markup/100)
Profit Margin = (Selling Price - Cost) / Selling Price × 100%
Results
Your Markup
Based on your input values
About Markup
Markup is the difference between the cost of a product or service and its selling price. It is expressed as a percentage above the cost.
Markup is used by businesses to cover overhead costs and generate profit. It's different from profit margin, which is the percentage of revenue that is profit.
Markup Calculator – Calculate Markup Percentage Online
Easily calculate markup percentage with our free Markup Calculator. Just enter the cost price and selling price, and the tool will instantly give you the markup %. Whether you are a business owner, retailer, or freelancer, markup is essential to setting profitable prices.
What is Markup?
Markup is the difference between the cost price of a product or service and its selling price, expressed as a percentage of the cost. It shows how much extra you charge above cost in order to make a profit.
Example: If you buy a product for $50 and sell it for $75, your markup is 50%.
Markup Formula
The basic formula for markup is:
Markup %=(SellingPrice–CostPrice)CostPrice×100\text{Markup \%} = \frac{(Selling Price – Cost Price)}{Cost Price} \times 100
Where:
Selling Price (SP) = final price you sell the product at
Cost Price (CP) = cost of producing or purchasing the product
Example of Markup Calculation
Example 1:
Cost Price = $100
Selling Price = $130
Markup %=(130–100)100×100=30%\text{Markup \%} = \frac{(130 – 100)}{100} \times 100 = 30\%
So, the markup is 30%.
Example 2:
Cost Price = $200
Selling Price = $280
Markup %=(280–200)200×100=40%\text{Markup \%} = \frac{(280 – 200)}{200} \times 100 = 40\%
So, the markup is 40%.
Markup vs Margin: Key Difference
Many people confuse markup with profit margin, but they are different:
| Term | Formula | Expressed As | Example (CP $100, SP $130) |
|---|---|---|---|
| Markup | (SP – CP) ÷ CP × 100 | % of cost | 30% |
| Margin | (SP – CP) ÷ SP × 100 | % of selling price | 23% |
Markup is based on cost, while Margin is based on selling price.
Why Use an Online Markup Calculator?
Manually calculating markup can be confusing, especially if you work with different products and prices. An online calculator helps you:
Save time with instant results
Avoid calculation mistakes
Quickly set profitable prices
Compare multiple scenarios for pricing
How to Use Our Markup Calculator
Enter your Cost Price.
Enter your Selling Price.
Click Calculate.
Instantly see the Markup %.
Use Cases for Markup Calculator
Retail businesses – set correct product pricing
E-commerce sellers – decide profit margins for online stores
Freelancers & service providers – calculate service markups
Small businesses – track profitability
FAQs about Markup Calculation
Q1. What is a good markup percentage?
It depends on your industry. Retailers often use 50% markup, while restaurants may go up to 200–300% markup.
Q2. Can markup be negative?
Yes, if the selling price is lower than the cost price, the markup will be negative (meaning a loss).
Q3. What is the difference between markup and margin?
Markup is calculated on cost, while margin is calculated on selling price. Both measure profit but from different perspectives.
Q4. Why is markup important in business?
Markup ensures your costs are covered and you make a profit. Without markup, businesses risk selling at a loss.