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- Markup is the amount you add to cost to reach the selling price, shown as a percentage of the cost. Selling price = cost × (1 + markup %).
- A $40 product with a 50% markup sells for $60, which is $20 profit per unit.
- Markup is not margin. The same sale is a 50% markup but only a 33.3% margin, because margin divides profit by price.
- Switch the calculator to find the selling price, the markup percentage, the cost, or the markup needed for a target margin.
How to use the markup calculator
Choose what to find
Pick Selling price, Markup %, Cost, or From margin. The form shows only the fields you need.
Enter two known values
For example cost and markup % to find the price, or cost and price to find the markup.
Read the result
You get the answer with profit per unit, markup, margin and the price-to-cost ratio.
Add a quantity
Open the advanced option to see revenue and profit for a batch of units.
What is markup?
Markup is the difference between what a product costs you and what you charge, expressed as a percentage of the cost. A product that costs $40 and sells for $60 has a $20 markup amount and a 50% markup. Retailers, wholesalers and sellers use it to set prices quickly, because you only need the cost and a markup percentage.
How to calculate markup
Markup formulas
Markup amount = selling price − cost
Markup % = (selling price − cost) ÷ cost × 100
Selling price = cost × (1 + markup %)
Cost = selling price ÷ (1 + markup %)
Margin % = (selling price − cost) ÷ selling price × 100
Markup divides by cost and margin divides by price, which is why the two percentages differ.
Markup examples
Example 1: find the selling price
A product costs $40 and you want a 50% markup.
- Markup amount $40 × 50% = $20
- Selling price $40 + $20 = $60
- Profit margin $20 ÷ $60 = 33.3%
A 50% markup gives a 33.3% margin, not 50%.
Example 2: find the markup percentage
A product costs $40 and sells for $60.
- Profit $60 − $40 = $20
- Markup $20 ÷ $40 = 50%
Divide the profit by the cost, not by the price.
Example 3: find the cost
A product sells for $60 with a 50% markup.
- Cost $60 ÷ 1.5 = $40
- Profit $60 − $40 = $20
Divide the price by one plus the markup to work back to the cost.
Example 4: start from a target margin
You want a 40% profit margin on a $40 cost.
- Selling price $40 ÷ (1 − 0.40) = $66.67
- Profit per unit $66.67 − $40 = $26.67
- Markup needed $26.67 ÷ $40 = 66.7%
A 40% margin needs a 66.7% markup, not 40%.
Example 5: a batch
A product costs $25 and you apply an 80% markup on 10 units.
- Selling price $25 × 1.8 = $45
- Profit per unit $45 − $25 = $20
- Revenue for 10 units $450
- Profit for 10 units $200
The quantity option shows the batch totals.
Markup vs margin
Markup and margin both describe profit, but they use different bases. Markup uses cost and margin uses the selling price, so for any profitable sale the margin is lower than the markup. To go from margin to markup, divide the margin by one minus the margin. To go from markup to margin, divide the markup by one plus the markup. For a full margin breakdown, use the profit margin calculator.
| Markup on cost | Profit margin | Price on a $40 cost |
|---|---|---|
| 10% | 9.09% | $44.00 |
| 20% | 16.67% | $48.00 |
| 25% | 20.00% | $50.00 |
| 30% | 23.08% | $52.00 |
| 40% | 28.57% | $56.00 |
| 50% | 33.33% | $60.00 |
| 75% | 42.86% | $70.00 |
| 100% | 50.00% | $80.00 |
| 150% | 60.00% | $100.00 |
| Target margin | Markup needed | Price on a $40 cost |
|---|---|---|
| 10% | 11.11% | $44.44 |
| 20% | 25.00% | $50.00 |
| 25% | 33.33% | $53.33 |
| 30% | 42.86% | $57.14 |
| 40% | 66.67% | $66.67 |
| 50% | 100.00% | $80.00 |
| 60% | 150.00% | $100.00 |
| 70% | 233.33% | $133.33 |
Using markup to price products
Set your price from the cost with a markup, then check the margin it leaves after fees. The wholesale pricing calculator sets prices for shops, and the Etsy profit calculator, Amazon FBA profit calculator and TikTok Shop profit calculator show your real profit after marketplace fees. Use the discount calculator for a sale price, the percentage calculator for other percentage maths, and the break-even calculator to see how many units cover your fixed costs.
Where a markup calculator helps
Price new products
Turn a unit cost into a selling price in seconds.
Check a price
See the markup and margin behind any price.
Hit a margin goal
Find the markup that delivers your target margin.
Plan a batch
See revenue and profit for a run of units.
Markup works from cost only. Shipping, fees, returns, discounts and tax change what you actually keep, so check the margin after those costs before you set a price.
Markup calculator FAQ
What is markup?
Markup is the amount added to the cost of a product to reach its selling price, shown as a percentage of the cost. A $40 cost sold at $60 has a 50% markup.
How do you calculate markup?
Subtract the cost from the selling price, divide by the cost and multiply by 100. For $60 and $40 that is $20 ÷ $40 × 100 = 50%.
How do you calculate markup percentage?
Use (selling price − cost) ÷ cost × 100. The result is the profit expressed as a percentage of what the product cost you.
What is the markup formula for selling price?
Selling price = cost × (1 + markup %). With a $40 cost and 50% markup, the price is $40 × 1.5 = $60.
What is the difference between markup and margin?
Markup is profit divided by cost and margin is profit divided by price. A 50% markup is a 33.3% margin, and a 100% markup is a 50% margin.
How do you convert margin to markup?
Divide the margin by one minus the margin. A 40% margin is 0.40 ÷ 0.60 = 66.7% markup.
How do you convert markup to margin?
Divide the markup by one plus the markup. A 50% markup is 0.50 ÷ 1.50 = 33.3% margin.
How do you find the cost from price and markup?
Divide the selling price by one plus the markup. A $60 price with a 50% markup gives $60 ÷ 1.5 = $40.
Can markup be more than 100%?
Yes. A 150% markup means the price is 2.5 times the cost. Margin, however, can never reach 100%.
Is markup the same as profit?
No. Markup is a percentage of cost, and profit is the money left after costs. The markup amount equals gross profit per unit before fees and other expenses.