Markup Calculator
Calculate selling price from cost and markup, and see the resulting margin.
What the Markup Calculator does
Markup adds a percentage of the cost to arrive at a selling price. It is not the same as margin, which measures profit against the selling price — a 50% markup produces only a 33.3% margin.
Formula
Selling price = Cost × (1 + Markup)Profit = Cost × MarkupMargin = Profit ÷ Selling price
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Cost | selected currency | Yes | Accepts more than 0. |
| Markup | % | Yes | — |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Cost and Markup.
- Select Calculate.
Worked example
An item costing $40 with a 60% markup.
- Cost
- 40
- Markup
- 60
Price $64, profit $24 — a 37.5% margin.
Reading the result
- Markup is measured against cost, so a 50% markup on a £10 item sells at £15 and yields a 33.3% margin.
- To hit a target margin, divide by (1 − margin) rather than multiplying by (1 + margin).
Common mistakes
- Setting markup equal to the margin you want, which consistently underprices the item.
- Applying markup to a cost that excludes carriage, packaging or payment fees, so the realised profit is lower than planned.
Frequently asked questions
Should I price on markup or margin?
Margin, if you have a profitability target to hit. Markup is easier to apply across a catalogue but obscures what you actually earn per sale.