Markup Calculator
Selling price and margin from cost and markup.
Inputs
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Free embed
- Two lines of HTML, unlimited views
- Shows a small CalculateEveryday bar, with a credit link under the calculator
Formula
Selling price = cost × (1 + markup). Resulting margin = markup ÷ (1 + markup)
A markup is a percentage of cost added on top of cost. The margin that produces is always lower, because the same profit is then measured against the larger selling price rather than against cost.
Worked example
Marking up a $50 cost by 40% adds $20, for a selling price of $70. Measured against that price, the $20 is a 28.57% margin — not 40%.
Where this can give the wrong answer
- A markup percentage is not the margin you will earn. To hit a target margin, divide cost by (1 − margin) rather than adding that percentage to cost.
- Markup here is on cost, which is the retail convention. A few trades quote markup on selling price, which is really margin under another name — check which one a supplier means.
- The price shown is before sales tax, and the profit is before overheads.
FAQ
- 100%. Doubling the cost means half the selling price is profit. For a 33.33% margin the markup is 50%; for a 25% margin it is 33.33%.
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