Free Tool

Markup Calculator

Calculate selling price from cost and markup, or find your markup from cost and price. Includes markup vs. margin conversion.

Enter Your Numbers
Choose your calculation mode and enter the values
$
%

Your desired profit as a percentage of cost

Enter cost and either markup or selling price to see results

Pricing checklist
Review these inputs before treating the result as a final customer price
Direct cost
Materials, labor, or acquisition cost included in the calculator
Overhead
Software, insurance, admin time, rent, and other indirect costs
Delivery risk
Revisions, rush work, scope changes, warranties, and rework
Transaction costs
Discounts, payment processing, shipping, and sales costs
Customer value
The outcome, positioning, and market context for the offer
Common Examples
CostMarkupSelling PriceProfitMargin
$5060%$80$3037.5%
$10050%$150$5033.3%
$200100%$400$20050%

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Markup formulas and examples

Updated October 9, 2026

60% markup is not 60% margin

A $50 cost plus 60% markup gives an $80 selling price. The $30 difference is 60% of cost but only 37.5% of price. Use whole percentage values in the formulas below: enter 60 for 60%, not 0.60. Examples are illustrative, not pricing recommendations.

Selling price from markup
Cost × (1 + Markup % ÷ 100)
$50 × (1 + 60 ÷ 100) = $80
Markup from cost and price
(Price − Cost) ÷ Cost × 100
($80 − $50) ÷ $50 × 100 = 60%
Gross margin from cost and price
(Price − Cost) ÷ Price × 100
($80 − $50) ÷ $80 × 100 = 37.5%
Selling price from target gross margin
Cost ÷ (1 − Margin % ÷ 100)
$50 ÷ (1 − 50 ÷ 100) = $100 for a 50% margin

Markup percentage requires cost greater than zero, and gross margin requires a positive selling price. A target margin below 100% is required when cost is positive. To check gross margin from cost and selling price, use the Profit Margin Calculator.

Markup vs. Margin: What Every Business Owner Must Know

Markup and gross margin use the same difference between selling price and cost, but divide it by different amounts. Markup uses cost as its base; gross margin uses selling price.

Markup is what you add to your cost. If you buy something for $50 and apply a 60% markup, you add $30 — selling it for $80. Margin is what you keep from the sale. From that $80 selling price, you keep $30, which is 37.5% of the selling price. Same numbers, different percentages depending on what you're measuring against.

With a $100 cost and 50% markup, the price is $150 and gross profit is $50. Gross margin is $50 ÷ $150 × 100, approximately 33.3%. This is not net profit: overhead, payment fees, and other costs not included in the entered amount can reduce what remains.

Use our markup calculator in cost-to-price mode to set your prices, and in price-to-markup mode to analyze existing pricing. The margin conversion built into the results gives you both perspectives instantly. And always check our related Profit Margin Calculator to see the full picture.

Frequently Asked Questions

What is markup and how is it different from profit margin?

Markup measures gross profit as a percentage of cost; gross margin measures it as a percentage of selling price. A $50 cost with 60% markup gives an $80 price, $30 gross profit, and 37.5% gross margin. These figures use the cost you enter and do not automatically account for overhead, fees, or taxes.

What is the markup formula?

Markup % = (Selling Price − Cost) ÷ Cost × 100. Selling Price = Cost × (1 + Markup % ÷ 100). Enter 60 for 60%: a $50 cost gives $50 × (1 + 60 ÷ 100) = $80. Cost must be greater than zero to calculate a markup percentage.

What is a good markup percentage?

There is no single markup percentage suitable for every business. The examples illustrate arithmetic, not recommended rates. Review which costs you included, overhead, fees, discounts, and your actual market before choosing a selling price.

Why is knowing my markup important?

Markup shows how much the selling price exceeds the entered cost. It helps compare pricing scenarios, but a positive markup does not guarantee net profit: costs left out of the calculation still need to be paid.

How do I convert between markup and margin?

Using percentage values such as 60 for 60%: Margin % = 100 × Markup % ÷ (100 + Markup %), and Markup % = 100 × Margin % ÷ (100 − Margin %). Thus 60% markup gives 37.5% margin, while 50% margin requires 100% markup. For a positive cost, a target gross margin must be below 100%.

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