Markup Calculator
The markup calculator is a business tool most often used to calculate your selling price. Enter your cost and desired markup — or any two values — and your selling price, gross profit, and margin are computed instantly. You can also use it as a reverse markup calculator: enter the selling price and cost to find your markup percentage. Or use it as a selling price calculator: enter cost and markup to get your price. Keep reading to learn what markup is, how to calculate markup percentage, and what makes a good markup for your industry.
Also useful: You may also want to try our Break-Even Calculator to find your minimum profitable volume, or our Discount Calculator to see how discounts affect your markup. Stop doing the math by hand — focus on running your business.
Markup Calculator
Enter any two values — the rest calculate automatically.
Bulk Markup Calculator
Calculate markup for multiple products at once — export to CSV or PDF.
| Product Name | Cost Price | Markup % | Selling Price | Profit | Margin % |
|---|
What Is Markup?
The basic rule of any profitable business is to sell a product or service for more than it costs to produce or provide it. Markup is the percentage by which you raise your cost price to arrive at your selling price. It is the amount above cost that covers your business expenses and generates profit.
For example, if you buy a product for $80 and sell it for $100, your profit is $20. To find the markup percentage: divide the profit by the cost and multiply by 100. In this case, ($20 ÷ $80) × 100 = 25%. So your markup is 25%.
Markup is used in virtually every business transaction — from small retailers and freelancers to large manufacturers and wholesalers. Getting your markup right is one of the most important decisions in business: too low and you cannot cover costs; too high and customers go elsewhere.
Key point: A high markup does not always mean high profit. A restaurant may mark up beverages by 500%, but after paying rent, staff, and other overhead, net profit can still be below 5%. Always account for ALL costs when setting your markup, not just the product cost.
Markup Calculation Formula — How to Calculate Markup
The markup calculation formula is one of the most important formulas in business pricing. Here it is:
Markup Percentage Formula
Markup % = (Selling Price − Cost) ÷ Cost × 100
We multiply by 100 to express the result as a percentage. This markup calculation formula is simply a percentage increase formula applied to cost. It is the basis of our markup calculator above.
How to Calculate Markup — Step by Step
Knowing how to calculate markup and how to calculate markup percentage is essential for every business. Use our markup calculator above to calculate markup percentage automatically — or use the markup formula: (Selling Price minus Cost) divided by Cost times 100. Whether you need to learn how to calculate markup for a product, a service, or an entire catalog, the process is identical. Many business owners search for how to calculate markup percentage when starting out: the answer is always profit divided by cost times 100.
- Determine your COGS (cost of goods sold) — e.g. $40.
- Find your gross profit: Selling Price − Cost. If you sell for $50, profit is $10.
- Divide profit by COGS: $10 ÷ $40 = 0.25.
- Multiply by 100: 0.25 × 100 = 25%. That is how to calculate markup percentage.
Or simply enter your cost and selling price into the markup calculator above — it calculates the markup percentage for you instantly.
How to Calculate Selling Price Using Markup Percentage
If you know your cost and desired markup, this is how to calculate selling price using markup percentage:
Selling Price Formula
Selling Price = Cost × (1 + Markup% ÷ 100)
Example: Cost = $40, Markup = 50%. Selling Price = $40 × 1.50 = $60. Profit = $20.
This is the most common use of a markup calculator — you know what you paid for a product and want to find the price to charge your customer.
Reverse Markup Calculator — Find Cost from Selling Price
Our reverse markup calculator lets you work backwards. If you know the selling price and markup percentage but need to find the original cost:
Reverse Markup Formula
Cost = Selling Price ÷ (1 + Markup% ÷ 100)
Example: Selling Price = $60, Markup = 50% → Cost = $60 ÷ 1.50 = $40.
The reverse markup calculator is useful when you want to verify a supplier’s cost claim, check a competitor’s markup, or understand the cost structure behind a given retail price.
How to Find Markup Percentage — 4 Common Scenarios
The most reliable way to find markup percentage is to enter your cost and selling price into the markup calculator above. To find markup percentage manually, divide profit by cost and multiply by 100. Business owners often need to find markup percentage across multiple products: our markup calculator handles this for any cost and price combination. Once you know how to find markup percentage for one product, the same markup formula applies across your entire range.
Depending on what information you have, here is how to find markup percentage in each scenario:
- You know cost and selling price: Markup % = (Selling Price − Cost) ÷ Cost × 100.
- You know cost and profit: Markup % = (Profit ÷ Cost) × 100.
- You know margin and want markup: Markup % = Margin % ÷ (100 − Margin%) × 100.
- You know selling price and markup: Cost = Selling Price ÷ (1 + Markup% ÷ 100).
Markup vs Margin — Key Difference
Markup vs margin is one of the most misunderstood topics in business pricing. Both measure profitability, but they measure it against different bases:
- Markup compares profit to COST. It tells you how much above cost you charged.
- Margin compares profit to REVENUE. It tells you what proportion of your revenue is profit.
Same transaction — different numbers. Example: $80 cost, $100 selling price:
- Markup = ($20 ÷ $80) × 100 = 25%
- Margin = ($20 ÷ $100) × 100 = 20%
In the markup vs margin comparison, markup is always the higher number. They can never be equal (except at 0%). This is the most important thing to understand when setting prices.
| Metric | Formula | Based On | $80 cost / $100 price |
|---|---|---|---|
| Markup % | (Price − Cost) ÷ Cost × 100 | Cost | 25% |
| Margin % | (Price − Cost) ÷ Price × 100 | Revenue | 20% |
| Gross Profit | Price − Cost | — | $20 |
Common mistake: Many business owners say they want a “50% profit” — but 50% of what? A 50% markup equals only a 33.3% margin. A 50% margin requires a 100% markup. Always clarify markup vs margin when discussing pricing with your team or accountant.
To convert: Margin % = Markup % ÷ (100 + Markup%) × 100. Reverse: Markup % = Margin % ÷ (100 − Margin%) × 100.
Markup in Price Management — Cost-Plus Pricing
One of the most common pricing strategies is cost-plus pricing — also called markup pricing. The formula is:
Cost-Plus Pricing Formula
Price = (1 + Markup Rate) × Unit Cost
Around 75% of businesses use cost-plus pricing because it is simple: know your costs, apply your industry’s standard markup, and you have your price. Any change in cost automatically adjusts the price proportionally.
However, pure cost-plus pricing has one major weakness — it ignores demand. A classic example: imagine you sell umbrellas at $10 each based on a $5 cost and 100% markup. On sunny days, customers barely buy them at $10. On rainy days, customers would happily pay $15 or $20 — but your markup calculator is set to $10. Cost-plus pricing leaves money on the table when demand is high.
Cost-plus markup pricing works best when your costs and your competitors’ costs are similar, and demand is relatively stable. For products with strong brand differentiation or fluctuating demand, adjusting your markup to reflect market conditions significantly increases profitability.
Retail Markup Pricing Rules
In retail, the right markup depends on the product. Experienced retailers follow these principles when setting markup:
- Lower-priced products typically carry higher markup percentages. A $1 item might carry 100% markup; a $1,000 item might only carry 20%.
- Fast-moving inventory should have lower markup — profit comes from volume, not margin per unit.
- Key-value items (products customers use to compare prices) should be priced competitively — low markup here.
- Everyday staples should carry lower markup than seasonal or specialty products.
- Always adjust markup to the competitive environment — charging significantly more than competitors requires clear differentiation.
Industry Markup Benchmarks — What Is a Good Markup Percentage?
There is no single correct markup percentage — it depends on your industry, overhead costs, and competitive environment. Here are typical markups across major industries to benchmark your own markup calculation:
| Industry | Typical Markup |
|---|---|
| Grocery retail | ~15% |
| Restaurants — food | ~60% (up to 300%) |
| Restaurants — beverages | Up to 500% |
| Jewelry | ~50% |
| Clothing & Apparel | 150–250% (brand-dependent) |
| Automotive (standard) | 5–10% |
| Automotive (sports cars) | Up to 30% |
| Contractor / Trades | 20–50% |
| Pharmacy / prescription drugs | 200–5,000% |
| Software / SaaS | 200–500%+ |
| Wholesale distribution | 15–30% |
Surprising High-Markup Products
Some markups will genuinely surprise you. These real examples show just how wide markup percentages can vary:
- Movie theater popcorn: average markup of 1,275%. A $8 bucket of popcorn cost the theater roughly 60 cents.
- Bottled water: up to 4,000% markup over production and packaging costs.
- Prescription drugs: 200–5,000% markups, justified by R&D costs and regulatory expenses.
- Restaurant wine: typically 200–300% above retail price.
- Greeting cards, college textbooks, eyeglass frames: all carry markups far above production cost.
Remember: high markup does not mean high profit. Restaurants mark up beverages by 500% but still have net profit margins below 5% due to high overhead. Always calculate your break-even markup first.
How to Use This Markup Calculator
Go ahead and try entering different numbers. Fill in any two fields and all remaining values update automatically.
Contractor Markup Calculator
This contractor markup calculator is designed for tradespeople who apply markup to total project cost. Use the contractor markup calculator to enter your combined materials, labor, and overhead, then apply your markup percentage to get your client quote. The contractor markup calculator shows both the quoted price and your gross profit per job so you always know your exact earnings.
For contractors and tradespeople, the contractor markup calculator works on total project cost — materials, labor, subcontractors, and overhead combined:
- Calculate total project cost: materials + labor + overhead + subcontractor fees.
- Apply your markup percentage — typically 20–50% for contractors and trades.
- The result is your client quote.
Example: Total project cost = $8,000. Apply 35% markup. Client quote = $8,000 × 1.35 = $10,800. Gross profit = $2,800. Your contractor markup calculator result.
Critical note for contractors: your markup must cover not just direct job costs but also insurance, vehicle costs, tools, office expenses, and your salary. Many contractors underprice by only marking up materials and labor while forgetting overhead. Use this contractor markup calculator to see your true markup percentage.
Retail Markup Calculator
The retail markup calculator helps retailers set competitive selling prices. Most general retailers use 30–50% markup. The keystone pricing method — a 100% markup that doubles the wholesale price — is standard in jewelry, boutique clothing, and specialty retail.
Using this retail markup calculator: enter your wholesale cost and desired markup percentage to find your retail selling price instantly. Already have a price set? Enter cost and selling price to see your current markup percentage and whether it aligns with your industry’s benchmarks.
Wholesale Price Calculator & Selling Price Calculator
This wholesale price calculator helps manufacturers and distributors set accurate prices at every supply chain level. As a selling price calculator, it converts any cost and markup into a ready-to-use price instantly. For those who need to know how to calculate selling price using markup percentage: Selling Price = Cost multiplied by (1 + Markup% divided by 100). Both the wholesale price calculator and selling price calculator functions are available in the free markup calculator above.
Our markup calculator also functions as a wholesale price calculator and selling price calculator. Whether you are a manufacturer pricing for wholesalers, or a retailer setting consumer prices, the markup calculation formula is the same. Here is how markup typically works across the supply chain:
- Manufacturer → Wholesaler: 20–40% markup on production cost.
- Wholesaler → Retailer: 15–30% markup on wholesale cost.
- Retailer → Consumer: 30–100%+ markup on wholesale cost.
As a selling price calculator, this tool lets you enter any cost and markup to instantly get the price to charge at each level of the supply chain.
5 Tips for Setting the Right Markup
- Know ALL your costs — not just COGS. Your markup must cover rent, salaries, marketing, returns, and a profit margin. The markup calculation must account for overhead, not just product cost.
- Research your competitors. If your markup pushes prices above market rates, you need a clear reason — quality, brand, service — to justify it.
- Price for perceived value. Premium products in jewelry, fashion, and software command markups far above cost because customers pay for experience and brand, not just the product.
- Review your markup regularly. As supplier costs, shipping, and labor rise, your markup needs to be updated to protect your margins.
- Calculate your break-even markup first. Know the minimum markup needed to cover all fixed and variable costs. Below this, you lose money on every sale, regardless of volume.
Frequently Asked Questions
What is my profit for a 40% markup on a $50 cost?
Your profit is $20. Formula: Profit = Markup% × Cost ÷ 100 = 40 × 50 ÷ 100 = $20. Selling price = $50 + $20 = $70. Use our markup calculator above to verify this instantly.
What does a 100% markup mean?
A 100% markup means you sell the product for double its cost. Cost $50 → Selling Price $100. Your profit equals your cost ($50). Note: a 100% markup equals a 50% margin — not a 100% margin. This is the keystone pricing method common in retail.
What is the difference between markup and margin?
Markup vs margin: markup compares profit to cost; margin compares profit to revenue. Example: $80 cost, $100 price → 25% markup but 20% margin. In the markup vs margin comparison, markup is always the higher percentage. They can never be equal except at 0%.
How do I calculate a 30% markup?
Multiply the cost by 1.30. Example: Cost = $100 → Selling Price = $100 × 1.30 = $130. Profit = $30. Or use the markup calculator: enter $100 cost and 30% markup.
How do I calculate a 40% markup?
Multiply the cost by 1.40. Example: Cost = $50 → Selling Price = $50 × 1.40 = $70. Profit = $20.
How do I calculate a 50% markup?
Multiply cost by 1.50. Cost = $80 → Selling Price = $80 × 1.50 = $120. Profit = $40. Important: a 50% markup is only a 33.3% margin — not 50%.
What is a good markup percentage for retail?
Most general retail uses 30–50%. Jewelry and boutique clothing often use 100% (keystone). Grocery operates on 5–25% due to volume. The right markup depends on your overhead, competition, and product. Use our retail markup calculator to benchmark your current pricing.
How do I calculate markup percentage without the selling price?
If you know cost and profit: Markup % = (Profit ÷ Cost) × 100. Without selling price, you need to set a target markup first, then calculate: Selling Price = Cost × (1 + Markup% ÷ 100). This is how to find markup percentage from scratch.
How do I calculate selling price using markup percentage?
Formula: Selling Price = Cost × (1 + Markup% ÷ 100). Example: Cost = $25, Markup = 60% → Selling Price = $25 × 1.60 = $40. This selling price calculator formula is the most common use of markup in business.
How do I use the reverse markup calculator?
The reverse markup calculator finds cost from selling price: Cost = Selling Price ÷ (1 + Markup% ÷ 100). Example: Selling Price = $60, Markup = 50% → Cost = $60 ÷ 1.50 = $40. Useful for verifying supplier costs or analyzing competitor pricing.
How do I find markup percentage?
To find markup percentage: Markup % = (Selling Price − Cost) ÷ Cost × 100. Example: Cost $40, Selling Price $60 → ($60 − $40) ÷ $40 × 100 = 50%. You can also use the markup calculator above — enter cost and selling price to find markup percentage automatically.
What is the markup calculation formula?
The markup formula covers three pricing scenarios. Markup formula to find markup %: (Selling Price minus Cost) divided by Cost times 100. Markup formula to find selling price: Cost times (1 + Markup% divided by 100). Reverse markup formula to find cost: Selling Price divided by (1 + Markup% divided by 100). These three versions of the markup formula apply in all industries — retail, wholesale, construction, and e-commerce.
The markup calculation formula is: Markup % = (Selling Price − Cost) ÷ Cost × 100. To find selling price: Selling Price = Cost × (1 + Markup% ÷ 100). To find cost (reverse): Cost = Selling Price ÷ (1 + Markup% ÷ 100). These three versions of the markup calculation formula cover all common pricing scenarios.
What is a cost-plus markup calculator?
A cost-plus markup calculator takes total costs (materials + labor + overhead) and adds a fixed markup percentage to determine the selling price. The formula: Price = Total Cost × (1 + Markup%). Used by contractors, manufacturers, and wholesalers. Enter your total project cost and desired markup in the contractor markup calculator above.
How do I calculate markup on cost?
Markup on cost = (Selling Price − Cost) ÷ Cost × 100. Example: Cost $40, Selling Price $60 → ($60 − $40) ÷ $40 × 100 = 50%. This is the standard markup calculation formula used in all industries.