Markup Calculator
Markup is how most businesses actually set prices: take the cost, add a percentage, quote the result. This calculator does that instantly — enter a cost and a markup and you get the selling price and the profit per unit. Just as importantly, it shows the margin that markup produces, because the two numbers are never the same and confusing them quietly erodes profit. A 50% markup sounds like half your revenue is profit; it is really 33%. Work in either direction: from cost and markup to a price, or from a price you already charge back to the markup it represents. Nothing you enter leaves your browser.
Percentage added on top of your cost.
Markup to margin reference
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
Selling price
$60.00
$40.00 cost plus 50.0% markup.
- Profit per unit
- $20.00
- Markup applied
- 50.00%
- Actual gross margin
- 33.33%
The share of revenue you keep — always lower than the markup.
Markup is applied to direct cost only. Make sure yours is large enough to cover overheads such as rent and salaries as well as leaving profit.
How to use Markup Calculator
- 1
Enter the unit cost
Type what the item costs you — wholesale price, materials, or the direct cost of delivering the service.
- 2
Enter your markup percentage
Add the markup you want to apply, for example 50%. To go the other way, switch mode and enter the price you charge instead.
- 3
Check the price and the real margin
Read the selling price, the profit per unit and the margin that markup produces — then sanity-check it against your target margin.
Why use this tool
- Cost plus markup to a selling price in one step
- Shows the true margin behind any markup percentage
- Reverse mode: derive the markup from a cost and an existing price
- Built-in markup-to-margin reference table
- Free, instant, and fully private — no data is sent anywhere
Frequently asked questions
- How do I calculate markup?
- Divide profit by cost and multiply by 100. If an item costs $40 and sells for $60, the markup is (60 − 40) ÷ 40 × 100 = 50%. To go the other way, multiply the cost by (1 + markup ÷ 100): $40 at a 50% markup gives a $60 price.
- What is the difference between markup and margin?
- They measure the same profit against different bases. Markup is profit divided by cost; margin is profit divided by the selling price. Markup is always the larger number. A 50% markup equals a 33.3% margin, and a 100% markup equals a 50% margin.
- How do I convert markup to margin?
- Margin = markup ÷ (1 + markup), using decimals. A 0.60 markup gives 0.60 ÷ 1.60 = 0.375, or 37.5% margin. This calculator shows the converted figure automatically, and there is a quick-reference table on this page for common values.
- What is a typical markup percentage?
- It varies sharply by sector. Grocery retail often runs 10-15%, apparel 100% or more (keystone pricing), restaurant food 200-300% on ingredient cost, and building trades commonly 15-25% on materials plus labour. Position yourself against your own industry, not a general average.
- Should I mark up on cost or price to a target margin?
- Markup on cost is quicker for day-to-day quoting, especially with many SKUs. Pricing to a target margin is safer when you have a profit figure you must hit, because it removes the markup-versus-margin confusion. Many businesses set a target margin at the strategy level and then convert it to a markup rule for staff to apply.
- Does markup include overheads?
- Markup is applied to direct cost, so it needs to be large enough to cover overheads and still leave profit. If your markup only covers your gross costs, rent and salaries come out of what looked like profit. Work out what share of revenue your overheads consume before deciding on a markup rule.
- Can I use this for services rather than products?
- Yes. Use your direct delivery cost — typically the loaded hourly cost of the person doing the work — as the cost figure. The arithmetic is identical whether you are pricing a widget or a billable hour.
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