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Markup Calculator

Calculate markup, profit, margin, selling price from markup, and cost price from markup.

Required for direct calculation and solving for selling price.

Required for direct calculation and solving for cost price.

Required when solving for selling price or cost price.

Status: initial

Results

Awaiting calculation

Business guide

Introduction

The Markup Calculator helps sellers, businesses, freelancers, and ecommerce teams calculate markup from cost and selling price, or solve for price from a target markup.

Markup is profit divided by cost price, multiplied by 100. Profit margin uses selling price as the denominator, so markup and margin usually produce different percentages.

Formula and method guide

Markup

Markup = (Selling Price - Cost Price) / Cost Price x 100

Markup measures price increase relative to cost.

Selling price from markup

Selling Price = Cost Price x (1 + Markup / 100)

Use this to price an item from cost and a desired markup.

Cost price from markup

Cost Price = Selling Price / (1 + Markup / 100)

Use this to estimate allowable cost for a target markup and known selling price.

Variables

Cost price

The cost to buy, make, or deliver the product or service.

Selling price

The price charged to the customer.

Profit

Selling price minus cost price.

Markup

Profit as a percentage of cost price.

Profit margin

Profit as a percentage of selling price.

FAQs

What does this Markup Calculator calculate?
It calculates markup, profit, profit margin, selling price from markup, and cost price from markup.
What is markup?
Markup is profit divided by cost price, multiplied by 100.
What is the markup formula?
Markup equals selling price minus cost price, divided by cost price, times 100.
How do I calculate selling price from markup?
Use selling price = cost price x (1 + markup / 100).
How do I calculate cost price from markup?
Use cost price = selling price / (1 + markup / 100).
Is markup the same as margin?
No. Markup uses cost price as the denominator, while margin uses selling price.
Why is markup higher than margin?
For the same profit, cost price is usually lower than selling price, so the markup percentage is higher.
Can markup be zero?
Yes. A 0% markup means selling price equals cost price.
Can markup be over 100%?
Yes. A 100% markup means selling price is twice the cost price.
Can profit be negative?
Yes. If selling price is below cost price, profit and markup are negative in direct calculation.
Does this include tax?
Only if tax is included in the entered cost or selling price.
Does this include shipping?
Only if shipping is included in the entered cost.
Can ecommerce sellers use this?
Yes, but include platform, payment, packaging, shipping, and return costs where relevant.
Can service businesses use this?
Yes. Use direct service delivery cost as cost price and client invoice amount as selling price.
Is this business advice?
No. It is an educational calculator and not business, tax, financial, or pricing advice.

References

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