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Markup Calculator
Use this markup calculator to find markup from cost and selling price, or derive selling price from a target markup percentage.
Markup Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
If an item costs $40 and sells for $58, markup is (($58 - $40) / $40) * 100 = 45%. If you target a 60% markup, the selling price would be $64.
How this calculation works
When selling price is supplied, markup is (price − cost) ÷ cost and margin is (price − cost) ÷ price. When desired markup is supplied, selling price is cost × (1 + markup). The model assumes one cost base and does not automatically add tax, discounts, commissions, or overhead.
How to interpret the result
Markup describes price relative to cost; margin describes gross profit relative to revenue. Choose the metric used by your operating and accounting reports. A target markup can still produce inadequate net profit if the cost base omits selling or operating costs.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
If an item costs $40 and sells for $58, markup is (($58 - $40) / $40) * 100 = 45%. If you target a 60% markup, the selling price would be $64.
Common use cases
- Convert cost into a marked-up price.
- Calculate achieved markup and margin.
- Reconcile merchandising and finance reports.
- Test supplier-cost changes.
- Avoid margin-versus-markup pricing errors.
Markup Calculator FAQ
What is the difference between markup and margin?
Markup compares profit to cost, while margin compares profit to selling price or revenue.
Do I need both selling price and desired markup?
No. You can provide either selling price or desired markup percentage, and the calculator will fill the other result.
Can cost be zero?
No. Markup calculations require a positive cost value.
Can I use this for services?
Yes. As long as you define a cost basis and selling price, the same markup logic applies.
Should markup cover overhead?
Markup is applied to the cost entered. If that cost excludes overhead, the resulting gross profit must still cover overhead and required operating profit.
Can I use margin as markup?
No. They have different denominators. Use price = cost ÷ (1 − margin) for a margin target and price = cost × (1 + markup) for a markup target.
Should sales tax be included?
Usually pricing analysis uses revenue net of taxes collected on behalf of authorities, but confirm the accounting and commercial convention relevant to the business.