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Markup Calculator

Calculate the selling price from your cost and desired markup percentage. Use this for retail pricing, wholesale, ecommerce, and service rate setting.

Your cost for the product or service.

The percentage you want to add on top of cost.

How to Use

1 Enter your cost for the product or service.
2 Enter the desired markup percentage.
3 Click Calculate.
4 Review the selling price, profit, and markup amount.

Formula

Selling Price Cost × (1 + Markup% / 100)
Markup Amount Selling Price − Cost
Profit Selling Price − Cost

Example Calculation

If your cost is $60.00 and you want a 50% markup:

Selling Price = $60 × 1.50 = $90.00
Markup Amount = $90 − $60 = $30.00
Profit = $90 − $60 = $30.00

Note: a 50% markup gives a 33.3% profit margin. They are not the same!

Why It Matters

Markup pricing is the most common method for setting selling prices in retail and wholesale. It is simple and predictable. However, always remember that markup and margin are different — a 50% markup does not mean a 50% profit margin.

Who Uses This Calculator?

  • • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
  • • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
  • • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.

Frequently Asked Questions

What is markup?
Markup is the amount added to the cost of a product to determine its selling price, expressed as a percentage of the cost. For example, if a product costs $60 and you sell it for $90, the markup is 50% ($30 is 50% of $60). Markup is always calculated based on cost.
What is the difference between markup and margin?
Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A 50% markup on a $60 cost gives a $90 selling price, but the margin is only 33.3% ($30 profit ÷ $90 selling price). Margin is always lower than markup for the same dollar profit.
What is a good markup percentage?
It varies greatly by industry. Grocery stores typically use 1–3% markup, restaurants 60–300%, clothing 100–350%, electronics 10–30%, and software/SaaS 200–500%. Research your industry standard and factor in overhead, competition, and perceived value when setting your markup.
How to calculate selling price from markup?
Multiply your cost by (1 + markup percentage / 100). For example, a $40 cost with 75% markup: $40 × 1.75 = $70 selling price. The formula ensures you consistently add the same percentage on top of cost regardless of the cost amount.
Does markup include overhead?
Basic markup is calculated on direct cost only. If you want your markup to cover overhead (rent, salaries, utilities, marketing), you need to include those costs in your base cost or use a higher markup percentage. Many businesses use a tiered approach: cost + overhead + desired profit margin.

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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.