Markup Calculator

What is markup?

Markup is the amount you add to the cost of a product to set its selling price, expressed as a percentage of the cost. If an item costs 100 and you apply a 50% markup, you add 50, selling it for 150. Markup is how most retailers and resellers price their goods. Enter your cost and markup above and the calculator shows the selling price, profit, and margin instantly.

Markup vs. margin — the key difference

These two are constantly confused, and mixing them up costs businesses money. Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. For the example above (cost 100, price 150, profit 50), the markup is 50% (50 ÷ 100) but the margin is only 33.3% (50 ÷ 150). Margin is always lower than markup, which is why the calculator shows both.

The formulas

• Selling price = cost × (1 + markup ÷ 100)
• Profit = selling price − cost
• Margin % = profit ÷ selling price × 100

Choosing a markup

The right markup depends on your industry, competition, and costs. Groceries run on thin markups and high volume, while specialty or luxury goods carry much higher ones. Make sure your markup covers not just the product cost but also your overhead — rent, salaries, and other expenses — so the margin left is a real profit.

FAQ

Is a 100% markup the same as 100% profit?

No. A 100% markup doubles the price (cost 100 → price 200), but the margin is 50% — half the selling price is profit. Markup and profit margin are never the same number except at 0%.

Which should I use to price my products?

Markup is easier when pricing from cost. But track your margin too, since that's what tells you how much of each sale you actually keep after the cost of goods.

Does this include taxes or overhead?

No — it works from the product cost only. Build overhead and taxes into your cost or target margin separately to make sure you're truly profitable.