Markup Calculator

Getting an answer takes four quick steps. The tool works in two directions, so start by picking the mode that matches what you know.

1. Choose "Find the selling price" if you know your cost and the markup you want, or "Find the markup percentage" if you know your cost and the price you charge.
2. Type your cost per unit in dollars. This is what you pay to make or buy one unit.
3. Type the markup percentage, or the selling price, depending on the mode you picked.
4. Press Calculate, or press Enter. The answer appears first and large, with the profit, the margin and the step-by-step math below. Press Reset to clear the form and start over.

Two formulas power this calculator, one for each direction.

To find the selling price: Price = Cost × (1 + markup). Enter the markup as a decimal, so a 50% markup is 0.50. With a $40 cost, the price is 40 × 1.50 = $60.

To find the markup: Markup = (Price − Cost) ÷ Cost. With a $60 price and a $40 cost, the markup is (60 − 40) ÷ 40 = 0.50, or 50%.

Cost is what you pay for one unit. Selling price is what the customer pays. Profit is the price minus the cost. Markup is that profit shown as a share of cost. Percentages and their bases trip people up, so our percentage calculator can help you check the arithmetic.

You make mugs for $40 each and want a 50% markup. Here is exactly what the calculator does.

1. Convert the markup to a decimal: 50 ÷ 100 = 0.50.
2. Markup amount = 0.50 × $40.00 = $20.00.
3. Selling price = $40.00 + $20.00 = $60.00.
4. Check the margin: $20.00 ÷ $60.00 = 33.33%. You keep about a third of each sale.

Notice the money is worked out in cents and rounded once, at the end. Rounding in the middle would shift the final price.

Markup and margin describe the same $20 profit, but they divide it by different numbers. Markup divides by cost, and margin divides by the selling price. Because cost is the smaller number, markup is always the bigger percentage.

Two formulas convert between them. Margin = markup ÷ (1 + markup), using decimals. Markup = margin ÷ (1 − margin). A 50% markup becomes 0.50 ÷ 1.50 = 33.33% margin, and a 40% margin needs 0.40 ÷ 0.60 = 66.67% markup.

A supplier quotes you a 30% margin. You add 30% to your cost and move on. That feels right, and it underprices you.

A 30% margin needs a 42.86% markup, because 0.30 ÷ 0.70 = 0.4286. If you multiply cost by 1.30 instead, your margin lands at 23.08%, since 0.30 ÷ 1.30 = 0.2308. The missing 7 points come straight out of profit.

Always confirm which number a quote uses. "30%" without a base is not a price yet. If it means margin, divide your cost by one minus the margin. For a $40 cost and a 30% margin, the price is 40 ÷ 0.70 = $57.14, not $52.00.

Adding a margin percentage to cost is the most expensive mistake, and the 30% trap above shows why. A few others catch sellers just as often.

Forgetting tax is one. Markup sets the pre-tax price, and sales tax lands on top of it, so check the final shelf price with our sales tax calculator before you print the tag.

Confusing markup with total profit is another. The markup amount must also cover rent, wages and card fees, not just the product cost. A 50% markup does not mean you keep 50%.

Rounding too early is quieter but real. Round only the final price. Rounding the markup amount first can shift the price by a cent or more on large orders, and those cents add up.

Finally, plan discounts before you price. If you intend to run a 20% sale later, set the markup so the discounted price still covers cost, and check the final number with our discount calculator.

This calculator gives an estimate for planning and is for informational purposes only, not financial advice. Actual pricing depends on your market, costs, competition and taxes. See our disclaimer.