💰 Markup Calculator

Calculate markup and selling price

How to Use This Calculator

1

Enter Cost

Input the cost of goods or service - the amount you paid or spent to produce or acquire it.

2

Enter Markup Percentage

Enter your desired markup percentage. Markup is profit as a percentage of cost (e.g., 25 for 25% markup).

3

Review Selling Price

See the selling price needed to achieve your markup, markup amount, and equivalent profit margin. Use this to price products based on cost and desired markup.

Formula

Selling Price = Cost × (1 + Markup%)

Markup Amount = Selling Price - Cost

Example Calculation:

If cost $100, markup 25%:

• Selling price = $100 × (1 + 25%) = $125

• Markup amount = $125 - $100 = $25

• Profit margin = ($25 / $125) × 100 = 20%

About Markup Calculator

A markup calculator helps you calculate the selling price by applying a markup percentage to the cost. Markup is profit as a percentage of cost - it shows how much you add to the cost to get the selling price. This calculator also shows the equivalent profit margin (profit as a percentage of selling price). Understanding markup helps you price products to achieve desired profit levels based on your costs, which is essential for cost-based pricing strategies.

When to Use This Calculator

  • Cost-Based Pricing: Price products based on cost and desired markup
  • Pricing Strategy: Calculate selling prices for desired markup
  • Profit Planning: Plan pricing to achieve profit goals
  • Business Planning: Set pricing strategies

Understanding Markup

  • Markup Definition: Profit as a percentage of cost
  • Cost-Based Pricing: Useful for pricing based on cost
  • Profit Margin: Also shows equivalent profit margin
  • Industry Use: Commonly used in retail and wholesale

Why Use Our Calculator?

  • ✅ Markup Calculation: Calculate selling prices with markup
  • ✅ Cost-Based Pricing: Price products based on cost
  • ✅ Profit Planning: Plan pricing for profit goals
  • ✅ Business Planning: Set pricing strategies
  • ✅ 100% Free: No registration or payment required

Frequently Asked Questions

What is markup?

Markup is profit as a percentage of cost. It shows how much you add to the cost to get the selling price. For example, with cost $100 and 25% markup, the selling price is $125 ($100 × 1.25). Markup is commonly used in cost-based pricing, where you determine price based on cost and desired profit percentage.

What's the difference between markup and margin?

Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. For example, with cost $100 and price $125: Profit = $25, Markup = 25% (profit / cost), Margin = 20% (profit / price). Markup is higher than margin for the same profit. Markup is used for cost-based pricing, while margin is used for revenue analysis.

What's a good markup percentage?

A good markup percentage depends on your industry, business model, and goals. Typical markups range from 20-50% for retail, 10-30% for wholesale, and 50-200%+ for specialized products. Higher markups may be needed for products with higher costs, risks, or lower volumes. Compare to industry benchmarks and your own profit goals.

How do I calculate selling price from markup?

To calculate selling price from cost and markup: Selling Price = Cost × (1 + Markup%). For example, with cost $100 and 25% markup: Selling Price = $100 × (1 + 25%) = $100 × 1.25 = $125. This calculator does the calculation for you - just enter the cost and markup percentage, and it shows the selling price and equivalent profit margin.