Markup Calculator

Add a markup percentage to your cost to get the selling price, markup amount and the equivalent gross margin.

$
What the item costs you.
Your rate is remembered on this device.
%
Percentage added on top of cost.
Your rate is remembered on this device.

Results

Selling price
$71.30
Markup amount (gross profit)
$9.30
Equivalent gross margin
13.04 %
Profit as a share of the selling price.

Estimate only. This tool is for informational and educational purposes. Results depend on your inputs and simplifying assumptions, and are not a substitute for professional engineering, design or financial advice. Always verify with a qualified professional and applicable codes before purchasing, building or making decisions.

How it’s calculated

Markup is the amount added to cost, expressed as a percentage of the cost.

Markup amount = Cost × markup% Selling price = Cost × (1 + markup%) Equivalent margin = Markup amount ÷ Selling price

Example (OpenStax Contemporary Mathematics, Example 6.16): an item costs 62.00 with a 15% markup. Markup = 62 × 0.15 = 9.30, so the retail price is 71.30. As a margin that is 9.30 ÷ 71.30 = 13.04% of the price.

This is general pricing arithmetic, not financial advice.

Frequently asked questions

What is the difference between margin and markup?

Markup is profit divided by cost; margin is profit divided by selling price. The same sale always has a higher markup % than margin %. A 50% markup equals a 33.33% margin.

What markup gives a 50% margin?

A 100% markup. Doubling the cost (cost 50, price 100) leaves profit of 50, which is half the price.

How do I find the cost from a marked-up price?

Divide the price by (1 + markup). A 29.50 price with an 18% markup came from a cost of 29.50 ÷ 1.18 = 25.00.

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Sources

Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.

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