Markup Calculator
Calculate selling price and profit from cost and markup percentage.
Markup formula
Selling Price = Cost × (1 + Markup % ÷ 100)
Example
A $50 item with a 40% markup has a selling price of $70 and a $20 gross profit.
Markup is based on cost
Markup expresses profit as a percentage of cost. Retail and wholesale pricing often starts from a known cost and applies a markup to estimate a selling price. Margin uses selling price as the denominator, so the two percentages are not interchangeable.
Markup and discount together
If a product will regularly be sold with discounts, calculate the effective selling price after the expected discount and then review the resulting margin. A high list-price markup can be reduced substantially by promotions, marketplace fees or other deductions.
Frequently Asked Questions
How is markup calculated?
Subtract cost from selling price, divide the difference by cost, then multiply by 100.
What markup gives a 50% margin?
A 50% margin corresponds to a 100% markup on cost because the selling price is twice the cost.
Should shipping and fees be included in cost?
Include the costs that are relevant to your pricing decision. For a fuller profitability view, businesses often include landed cost, transaction fees or other direct costs instead of product purchase cost alone.