Markup calculator
Enter your cost and either the selling price or the markup you want. You get the markup %, selling price, profit per unit and gross margin, with the formula shown.
Defaults to your region. Switch to compare any other scale.
Result
25%
Markup %
- Selling price100
- Profit per unit20
- Gross margin %20%
- Price multiplier (price ÷ cost)× 1.25
- Cost (what you pay)80
Markup is not margin
Markup divides profit by cost, margin divides the same profit by the selling price. That is why a 25% markup is only a 20% margin, and a 100% markup is a 50% margin.
About this tool
What is markup?
Markup is how much you add on top of your cost to get the selling price, expressed as a percentage of the cost. Retailers, wholesalers and freelancers use it to set prices that cover costs and leave a profit.
Markup formula
Markup % = (Price − Cost) ÷ Cost × 100. To go the other way: Price = Cost × (1 + Markup ÷ 100).
Markup vs margin
Margin uses the same profit but divides it by the selling price: Margin % = (Price − Cost) ÷ Price × 100. Markup is always bigger than margin for a profitable product. Common pairs: 25% markup = 20% margin, 50% = 33.3%, 100% = 50%.
Worked example
You buy a product for 80 and sell it for 100. Profit = 100 − 80 = 20. Markup = 20 ÷ 80 = 25%. Margin = 20 ÷ 100 = 20%. To get a 40% markup on the same cost: 80 × 1.40 = 112.
Formula
Profit = Price − CostMarkup % = (Price − Cost) ÷ Cost × 100Price = Cost × (1 + Markup % ÷ 100)Margin % = (Price − Cost) ÷ Price × 100 = Markup ÷ (1 + Markup)
How it is calculated
- Choose whether you know the selling price or the markup you want.
- Enter the cost per unit (purchase price or production cost).
- Enter the selling price, or the markup %.
- Read the markup, selling price, profit per unit and gross margin.
Questions
How do I calculate markup?
Subtract the cost from the selling price and divide by the cost, then multiply by 100. Cost 80 and price 100 give (100 − 80) ÷ 80 = 25%.
What is the difference between markup and margin?
Both use the same profit. Markup divides it by the cost, margin by the selling price. So a 50% markup equals a 33.3% margin. Margin = Markup ÷ (1 + Markup).
How do I find the selling price from a markup?
Multiply the cost by 1 plus the markup as a decimal. Cost 80 with a 40% markup: 80 × 1.40 = 112.
Should the cost include VAT?
Use both numbers on the same basis, usually without VAT if you can reclaim it. Add VAT to the selling price afterwards.