Markup Calculator

Calculate markup, cost, or selling price

Last updated: January 2025

About This Tool

Understanding markup is essential for pricing products profitably. This calculator helps you determine the right markup percentage to achieve your desired profit margins while staying competitive in your market.

What is Markup Calculator?

Markup is the percentage added to the cost of a product to arrive at its selling price. It represents the difference between what you pay for something and what you sell it for, expressed as a percentage of the cost. Markup is different from margin, which expresses profit as a percentage of the selling price.

How It Works

Markup is calculated by taking the difference between the selling price and cost, dividing by the cost, then multiplying by 100. Conversely, if you know your desired markup percentage, you can calculate the selling price by multiplying cost by (1 + markup percentage/100).

Formula

Markup % = (Selling Price - Cost) / Cost x 100

$50
$80

Markup

60.0%

Profit Margin

37.5%

Results

Cost

$50

Selling Price

$80

Profit

$30

💡 Markup vs Margin

Markup = (Profit / Cost) × 100

Margin = (Profit / Price) × 100

Common Markups

Grocery15-30%
Clothing50-100%
Electronics30-50%
Jewelry50-100%
Restaurants200-400%

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When to Use This Calculator

  • 1Setting prices for new products
  • 2Ensuring consistent pricing across product lines
  • 3Converting between cost and selling price
  • 4Comparing your pricing to industry standards
  • 5Adjusting prices when costs change

Pro Tips

  • Research industry-standard markups for your sector
  • Consider perceived value, not just cost-based markup
  • Remember that higher markup does not always mean higher profit
  • Account for all costs including overhead when setting markup
  • Different product categories may warrant different markups

Common Mistakes to Avoid

  • Confusing markup with margin (they are different calculations)
  • Using the same markup for all products regardless of value
  • Not accounting for all costs when calculating markup
  • Setting markup based only on competitors without knowing their costs
  • Forgetting that discounts erode your effective markup

Frequently Asked Questions

Related Resources