Markup Calculator

Calculate the selling price from cost and markup percentage, or find the markup from cost and price. Get the profit and pricing you need for retail and wholesale with this free markup calculator.

How to Use

  1. Enter cost

    Input the cost of your product or service.

  2. Enter markup percentage

    Input the desired markup percentage (%).

  3. View results

    See the selling price, profit amount, and equivalent margin percentage.

What is markup?

Markup is the percentage added on top of an item's cost (purchase price) to set its selling price. It expresses how much profit is built on top of the cost and is the starting point of pricing — the answer to 'what percentage do I add to cost when I sell?'

For example, applying a 50% markup to an item bought for $40 adds $20, making the selling price $60. In wholesale, retail, and food service, businesses often define standard markup rates by category (e.g. apparel 100%+, food and beverage 200–300%) and apply them across the board.

Markup lets you derive a selling price instantly from cost alone, which is handy for day-to-day pricing decisions. Keep in mind, though, that margin — which is measured against the selling price — gives a different figure for the same deal, so it's important not to confuse the two metrics.

Formula

Markup rate and selling price can be derived from each other.

Finding the markup rate
Markup (%) = (Selling Price - Cost) / Cost × 100

Example: with a cost of $60 and a selling price of $100, (100 - 60) / 60 × 100 = 66.7%

Finding the selling price
Selling Price = Cost × (1 + Markup / 100)

Example: applying a 50% markup to a $70 cost gives 70 × (1 + 0.5) = $105, with a profit of $35.

Frequently Asked Questions

What is markup?
Markup is the ratio of profit relative to cost. Selling a $60-cost item for $100 gives a markup of (100-60)/60 × 100 = 66.7%, and applying a 50% markup to a $70 cost gives a selling price of $105.
How is markup different from margin?
Markup is based on cost, while margin is based on the selling price. For the same deal, the markup rate is always higher than the margin rate. At a cost of 60 and a price of 100, markup is 66.7% but margin is 40%.
How do I work back to the selling price from markup?
Selling Price = Cost × (1 + Markup/100). With a $50 cost and a 40% markup, 50 × 1.4 = $70 is the selling price. The 'Find Selling Price' mode in this calculator computes it automatically.
A 100% markup equals what margin?
A 100% markup equals a 50% margin. It means doubling the cost, so profit makes up half of the selling price. You can convert with the formula Margin = Markup / (100 + Markup) × 100.
How should I set my markup rate?
Set it high enough to absorb fixed costs, labor, and your target profit, while also weighing competitor prices and what customers will accept. The usual approach is to use industry standards (apparel 100%+, food and beverage 200–300%) as a reference point, then adjust to your own cost structure.
Can I find the markup rate from just the price and cost?
Yes. In 'Find Markup %' mode, enter the cost and selling price and it automatically computes the markup as (Selling Price - Cost) / Cost × 100, and also shows the profit amount. Results are rounded to one decimal place.
Does a higher markup always mean more profit?
Per-unit profit grows, but a higher price can reduce sales volume. Since total profit is 'unit profit × units sold', you have to factor in how much demand drops as you raise the markup (price elasticity) for actual earnings to increase.
Can markup ever be negative?
If the selling price is below the cost, the markup rate comes out negative. This represents a loss-leading sale below cost (negative margin); unless it's intentional — like clearing inventory or a loss leader — you should revisit the price.
Updated 2026 — latest rates

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