Markup calculator
Turn a cost into a selling price. Enter what something costs you and the markup you want, and see the price, the profit and the margin that markup really gives you.
How to calculate markup
Markup is how much you add on top of cost. The calculator uses:
- Selling price = cost × (1 + markup ÷ 100)
- Profit = selling price − cost
- Gross margin = profit ÷ selling price × 100
Markup vs margin
People mix these up all the time, and it can cost real money. If you want a 30% margin and add a 30% markup, your actual margin is only 23%.
| Markup | Margin it produces |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 33.3% | 25% |
| 50% | 33.3% |
| 100% | 50% |
Example
A retailer buys a jacket for 60 and applies a 50% markup. Selling price: 60 × 1.5 = 90. Profit: 30. Margin: 30 ÷ 90 = 33.3%.
Using markup on invoices
Contractors often mark up materials by 10–25% to cover sourcing, handling and risk. Include the markup in the materials price on your invoice, or show it as a separate handling line if your contract says so.
Frequently asked questions
What is markup?
Markup is profit as a percentage of cost. If something costs 50 and you sell it for 75, the profit is 25 and the markup is 25 ÷ 50 = 50%.
What is the difference between markup and margin?
Markup divides profit by cost; margin divides profit by the selling price. The same sale always has a higher markup than margin. A 50% markup is a 33.3% margin.
How do I calculate selling price from markup?
Selling price = cost × (1 + markup ÷ 100). A 40% markup on a cost of 50 gives 50 × 1.4 = 70.
What markup should I use?
It depends on your industry, overheads and competition. Work out the margin you need to cover overheads and profit, then use the margin calculator to find the matching markup.