Markup Calculator
Calculate your markup percentage, profit margin, and selling price instantly. Enter your cost and either markup or margin to determine the optimal selling price for your products. Perfect for retailers, manufacturers, and business owners.
What Is Markup?
Markup is the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost. Markup is used by businesses to ensure they cover their costs and generate a profit on each sale.
This calculator works in two modes:
- Markup % Mode: Enter your cost and desired markup percentage to find the selling price, profit margin, and profit.
- Margin % Mode: Enter your cost and desired profit margin to find the selling price, markup, and profit.
How Does the Markup Calculator Work?
The calculator uses the following standard formulas:
Markup % Mode:
Selling Price = Cost × (1 + Markup%)
Profit = Selling Price − Cost
Profit Margin = (Profit ÷ Selling Price) × 100
Margin % Mode:
Selling Price = Cost ÷ (1 − Margin%)
Profit = Selling Price − Cost
Markup = (Profit ÷ Cost) × 100
For example: Cost = $80, Markup = 25%
Selling Price = $80 × 1.25 = $100
Profit = $100 − $80 = $20
Profit Margin = ($20 ÷ $100) × 100 = 20%
Why Use This Markup Calculator?
- Two Modes: Calculate from markup percentage or margin percentage.
- Multiple Currencies: Supports USD, EUR, GBP, and more.
- Visual Breakdown: A chart shows the relationship between cost, markup, and selling price.
- Bulk Calculations: Enter the number of units to see total cost, revenue, and profit.
- Free & Private: No registration, no data storage.
Markup vs Margin
- Markup: Profit expressed as a percentage of the cost. (Profit ÷ Cost)
- Margin: Profit expressed as a percentage of the selling price. (Profit ÷ Revenue)
- Key Difference: Markup is always higher than margin for the same profit. A 25% markup equals a 20% margin.
❓ Markup Calculator FAQ
What is markup?
Markup is the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost. For example, a 25% markup on an $80 product means you add $20, resulting in a $100 selling price.
What is the formula for markup?
Markup = (Selling Price − Cost) ÷ Cost × 100. Alternatively, Selling Price = Cost × (1 + Markup%).
What is the difference between markup and margin?
Markup is profit divided by cost (e.g., $20 ÷ $80 = 25%). Margin is profit divided by selling price (e.g., $20 ÷ $100 = 20%). Markup is always higher than margin for the same profit.
How do I calculate selling price from cost and markup?
Selling Price = Cost × (1 + Markup%). For example, if your cost is $80 and you want a 25% markup, the selling price is $80 × 1.25 = $100.
How do I calculate selling price from cost and margin?
Selling Price = Cost ÷ (1 − Margin%). For example, if your cost is $80 and you want a 20% margin, the selling price is $80 ÷ (1 − 0.20) = $100.
How do I calculate markup from margin?
Markup = Margin ÷ (1 − Margin). For example, a 20% margin equals a 25% markup: 0.20 ÷ (1 − 0.20) = 0.25.
How do I calculate margin from markup?
Margin = Markup ÷ (1 + Markup). For example, a 25% markup equals a 20% margin: 0.25 ÷ (1 + 0.25) = 0.20.
What is a good markup percentage?
Good markup percentages vary by industry. Retail typically uses 50-100% markup (keystone pricing), while grocery stores may use 10-20%. Manufacturing and wholesale often use 20-50% markup. This calculator helps you find the right markup for your business.
What is the difference between markup and gross profit?
Gross profit is the absolute dollar amount you earn (Revenue − Cost). Markup is the percentage added to the cost to determine the selling price. A $20 profit on an $80 cost is a 25% markup.
How does the calculator handle multiple units?
In advanced options, you can enter the number of units. The calculator will multiply the per-unit cost and revenue by the number of units to show total cost, total revenue, and total profit.
What is keystone markup?
Keystone markup is a 100% markup, meaning the selling price is double the cost. For example, if a product costs $50, the keystone price would be $100.
How do I use this calculator for pricing my products?
Enter your cost and desired markup or margin percentage. The calculator will show you the selling price you need to charge, along with the profit per unit and profit margin.
What is the difference between markup and margin in retail?
In retail, markup is commonly used to set prices (e.g., "keystone markup" of 50% means doubling the cost). Margin is used to measure profitability after sales. Both are important for different purposes.
How does markup affect profit?
A higher markup increases profit per unit but may reduce sales volume if prices become too high. A lower markup may increase sales volume but reduce per-unit profit. Finding the right balance is key to business success.
What is the difference between markup and margin in pricing strategy?
Markup is used to set prices from the cost perspective (cost-plus pricing). Margin is used to analyze profitability after sales. Both are important — markup helps you set prices, and margin helps you measure success.
How accurate is this markup calculator?
This calculator provides accurate results based on standard financial formulas. However, actual business performance may vary due to factors like overhead costs, taxes, and other expenses not included in this calculation.
Can I use this calculator for services?
Yes. For services, "cost" would be the cost of delivering the service (labor, materials, etc.), and markup would be the percentage added to determine the service price.
What is the relationship between markup and profit margin?
Markup and margin are two ways of expressing the same profit. Markup is based on cost, while margin is based on selling price. For any given profit, markup > margin. The calculator shows both so you can see the relationship.
What is the difference between markup and margin in retail?
In retail, markup is commonly used to set prices (e.g., "keystone markup" of 50% means doubling the cost). Margin is used to measure profitability after sales. Both are important for different purposes.
How do I calculate my markup percentage?
Markup percentage = (Selling Price − Cost) ÷ Cost × 100. For example, if you sell a product for $100 that costs $80, your markup is ($100 − $80) ÷ $80 × 100 = 25%.