Markup Calculator
Find the right selling price by applying a markup percentage to your product cost.
Markup Calculator
Enter your cost and desired markup to calculate selling price.
Pricing Breakdown
What Markup Actually Represents
Markup is the percentage added on top of cost to arrive at a final selling price, meaning it is always calculated based on cost, unlike margin, which is calculated based on the selling price itself. Understanding this distinction is essential for accurate pricing, since the same profit dollar figure will always produce a different percentage depending on whether it is expressed as markup or margin.
The Markup Formula This Calculator Applies
Selling price is calculated as cost multiplied by one plus the markup percentage expressed as a decimal. This calculator applies this formula the moment you enter your cost and desired markup percentage, instantly returning a recommended selling price that achieves your target profitability goal.
Pro Tip: A 30% markup on cost always works out to less than a 30% margin on revenue. Markup is based on cost, margin is based on selling price — and selling price is always higher.
Selling Price = Cost × (1 + Markup % ÷ 100)
Profit = Selling Price − Cost
Margin (%) = (Profit ÷ Selling Price) × 100
Markup is based on cost. Margin is based on selling price — they are different.
How to Use the Markup Calculator
Enter your product or service cost, representing what it actually costs you to produce or acquire the item. Enter your desired markup percentage, based on your business's target profitability or common practice within your specific industry. Your recommended selling price appears instantly once calculated.
Typical Markup Percentages Across Different Industries
Retail markups commonly range from 50 to 100 percent across many general merchandise categories, though this varies considerably by product type and competitive positioning. Restaurants often apply significantly higher markups on individual menu items to cover the substantial additional overhead of preparation, service, and dining space that a simple retail transaction does not involve.
Why Markup and Margin Produce Different Percentages From the Same Numbers
A common source of confusion arises because a 50 percent markup does not actually produce a 50 percent margin, despite both figures being derived from the identical cost and price numbers. A product costing $10 with a 50 percent markup sells for $15, but that same $15 selling price and $10 cost actually represents only a 33 percent margin, since margin divides profit by selling price rather than by cost as markup does.
Frequently Asked Questions
Multiply the cost by 1.5, since a 50 percent markup means adding half of the cost value on top of the original cost to determine the final selling price.
No, markup is calculated based on cost, while profit margin is calculated based on selling price, which means identical profit dollars will always produce two different percentages depending on which measure is used.
Retail markups commonly range from 50 to 100 percent depending on the specific product category and competitive positioning, though this varies considerably across different industries and business models.
Markup calculates profit relative to cost, while margin calculates the identical profit relative to selling price, and because selling price is always higher than cost, margin ends up as a smaller percentage than markup.
Markup is calculated on cost, margin on selling price — and selling price is always the bigger number. A 30% markup on cost always works out to less than a 30% margin on revenue.