Markup Calculator
Enter your product's cost and the markup percentage you want to apply to find the selling price, profit amount, and the resulting profit margin.
Selling price
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Enter cost and markup to calculate.
How the Markup formula works
Markup-based pricing:
Selling price = Cost × (1 + Markup% / 100) Profit = Selling price − Cost Margin% = (Profit / Selling price) × 100
Step-by-step calculation
- Convert the markup percentage to a decimal.
- Multiply the cost by (1 + markup) to get the selling price.
- Subtract cost from selling price to find profit.
- Divide profit by the selling price to find the resulting margin percentage.
Worked example
A product costing $25 with a 60% markup: Selling price = 25 × 1.60 = $40. Profit = $40 − $25 = $15. Resulting margin = 15/40 × 100 = 37.5%.
Frequently asked questions
How is markup different from margin?
Markup is calculated as a percentage of cost, while margin is calculated as a percentage of the selling price — the same $15 profit produces a 60% markup on a $25 cost but only a 37.5% margin on a $40 selling price.
Why would I use markup instead of margin to set prices?
Markup is often more intuitive for pricing decisions since it starts from a known cost ('add 50% on top of what I paid'), while margin is more useful for evaluating overall profitability as a share of revenue.