Entry — Markup
Calculate markup, selling price, cost, and profit quickly. Enter your cost and desired markup to find the selling price, or calculate markup from an existing selling price.
Cost can’t be negative.
Selling price can’t be negative.
Additional costs are added to your base cost before markup is applied. Sales tax is shown separately — never treated as markup or profit.
- Cost$0
- Markup amount$0
- Markup percentage0%
- Selling price$0
- Profit$0
- Profit margin0%
The Difference That Matters
Markup vs Profit Margin
Using your current cost and selling price, here’s how the two percentages compare.
Markup
Profit Margin
Markup is calculated from cost. Profit margin is calculated from selling price. The same dollar profit always produces a higher markup percentage than margin percentage.
Explore The Options
Compare Markup Scenarios
Using your current cost, here’s how a few common markup percentages compare.
| Markup | Cost | Markup Amount | Selling Price | Margin |
|---|
The Math
Markup Formula
Every markup calculation comes back to the same three numbers: cost, markup, and selling price.
- Cost — what the product costs you.
- Markup Amount — the dollar amount added on top of cost.
- Markup % — the markup amount as a percentage of cost.
- Selling Price — cost plus markup.
Markup percentage and profit margin percentage are not the same, because one is measured against cost and the other against selling price — see the comparison above.
Worked Example
Markup Calculator Example
- Cost
- $100
- Markup
- 40%
- Markup amount
- $100 × 40% = $40
- Selling price
- $100 + $40 = $140
- Profit margin
- $40 ÷ $140 = 28.57%
Notice the gap: a 40% markup produces a 28.57% profit margin — the same profit, expressed against two different bases.
Understanding The Basics
What Is Markup?
- 01
The amount added to cost
Markup is the dollar or percentage amount added on top of a product’s cost to set the selling price.
- 02
Why businesses use markup
It’s a simple, direct way to price from cost and ensure each sale contributes to covering expenses and profit.
- 03
How markup affects selling price
A higher markup percentage produces a higher selling price for the same cost.
- 04
How markup differs from margin
Markup is based on cost; margin is based on selling price — they answer different questions.
- 05
Markup can vary by product
Businesses often apply different markups across products based on cost, competition, and demand.
Side By Side
Markup vs Margin at a Glance
| Feature | Markup | Profit Margin |
|---|---|---|
| Based on | Cost | Selling price |
| Measures | Increase over cost | Profit as % of sales |
| Common use | Pricing | Profitability analysis |
| Formula basis | Cost | Revenue |
No Single Right Answer
Common Markup Examples
The “right” markup varies widely by industry, operating costs, competition, demand, product type, and desired profit. There’s no universal standard markup that applies across all businesses — what works for one product or industry may not work for another.
“Markup is a starting point for pricing, not a formula that guarantees the right price.”
Transparency
Markup Calculator Assumptions
- 01
Constant cost and markup
Results assume a fixed cost and markup percentage per unit.
- 02
Sales tax is shown separately
Tax is never treated as markup or profit — it’s calculated on top of your selling price only when you enter it.
- 03
Discounts reduce actual markup
Any discount you apply is calculated against the original selling price, changing your realized markup and margin.
- 04
Multi-product results are independent
Each row in the comparison table is calculated on its own — there’s no shared assumption between products.
- 05
Results are estimates
Actual pricing, costs, fees, taxes, and market conditions may vary from what’s entered here.
Questions
Frequently Asked Questions
Price your own product with confidence.
Free, fast, and no account required — run the calculator above with your own cost and markup.