Need to calculate a product’s markup or selling price? Our free Markup Calculator makes it easy to find the markup amount, markup percentage, or selling price of a product or service. Enter the cost and markup percentage to calculate the selling price, or enter the cost and selling price to find the markup.
You can use the calculator for products, retail pricing, small businesses, online stores, and other situations where you need to add a markup to your cost.
What Is a Markup Calculator?
A Markup Calculator helps you work out how much to add to the cost of a product or service to arrive at a selling price. It can also work backwards to find the markup when you already know the cost and selling price.
Markup is based on the cost of the product. The basic markup percentage is calculated by dividing the difference between the selling price and cost by the cost.
How to Use the Markup Calculator
You can use the calculator in two ways.
Calculate Selling Price
Choose Selling Price from Cost & Markup, then:
- Enter the cost price.
- Enter the markup percentage.
- Select your currency.
- Click Calculate.
The calculator will show the markup amount and the resulting selling price.
Calculate Markup
Choose Markup from Cost & Selling Price, then:
- Enter the cost price.
- Enter the selling price.
- Select your currency.
- Click Calculate.
The calculator will show the markup amount and markup percentage.
Markup Formula
The basic markup formula is:
Markup % = (Selling Price − Cost Price) ÷ Cost Price × 100
The markup amount is simply:
Markup = Selling Price − Cost Price
And when you already know the cost and markup percentage:
Selling Price = Cost Price + Markup
These formulas use the cost price as the base for calculating markup.
Markup Example
Suppose a product costs ₹500 and you want to add a 30% markup.
The markup amount is:
₹500 × 30% = ₹150
So the selling price would be:
₹500 + ₹150 = ₹650
In this example:
- Cost Price = ₹500
- Markup = ₹150
- Markup Percentage = 30%
- Selling Price = ₹650
How to Calculate Markup Percentage
If you already know the cost and selling price, you can calculate the markup percentage.
For example, suppose a product costs $100 and sells for $140.
The markup is:
$140 − $100 = $40
Then:
$40 ÷ $100 × 100 = 40%
So the product has a 40% markup.
Markup vs. Profit
Markup and profit are related, but they are not exactly the same thing.
Markup describes the amount added to the cost when setting a selling price. Profit is the amount left after costs and other applicable expenses are taken into account.
For a simple product calculation, the difference between selling price and product cost can be treated as the gross profit amount before other expenses are considered.
Markup vs. Profit Margin
Markup and profit margin are often confused because both are expressed as percentages, but they use different bases.
Markup:
(Selling Price − Cost) ÷ Cost × 100
Profit Margin:
(Selling Price − Cost) ÷ Selling Price × 100
For example, if something costs $100 and sells for $125:
- Markup = 25%
- Profit margin = 20%
The same sale can therefore have different markup and margin percentages.
Why Markup Is Useful
Markup can be useful when setting prices because it gives you a straightforward way to add a percentage to the cost of a product or service.
Businesses may use markup calculations when pricing products, determining selling prices, or reviewing whether a particular price covers the underlying cost.
Markup for Retail Products
Retailers can use markup to calculate a selling price from the purchase or product cost.
For example, if a store purchases an item for ₹800 and applies a 25% markup:
Markup = ₹800 × 25% = ₹200
The calculated selling price is:
₹800 + ₹200 = ₹1,000
The actual price a business charges may also need to account for taxes, shipping, discounts, operating expenses, marketplace fees, and other costs.
Markup for Small Businesses
A markup calculation can be useful for small businesses when pricing products or services.
For example, a business may know the cost of materials or inventory and then add a markup to establish a starting selling price.
However, markup alone does not show the complete profitability of a business. Other expenses such as rent, salaries, advertising, payment processing, shipping, taxes, and returns may also affect the final profit.
What Happens When Markup Is 0%?
A 0% markup means the selling price is equal to the cost price.
For example:
- Cost = $100
- Markup = 0%
- Markup Amount = $0
- Selling Price = $100
This does not necessarily mean the business has no other expenses. It simply means no markup has been added to the stated cost.
Can Markup Be Negative?
Yes. If the selling price is lower than the cost price, the calculated markup percentage will be negative.
For example, if an item costs $100 and sells for $90:
- Markup = −$10
- Markup Percentage = −10%
This indicates that the selling price is below the stated cost.
Markup and Discounts
Discounts can change the final amount a customer actually pays.
For example, a business may first calculate a selling price using a markup and then offer a discount. In that situation, the final selling price after the discount may be lower than the original marked-up price.
This is why businesses may need to consider both the initial markup and any discounts when reviewing actual sales prices.
Markup Does Not Include Every Business Expense
A simple markup calculation uses the cost and selling price provided by the user. It does not automatically account for every expense a business may have.
Depending on the business, additional costs can include:
- Shipping
- Packaging
- Advertising
- Staff costs
- Rent
- Payment processing fees
- Marketplace fees
- Taxes
- Returns and refunds
For pricing decisions, these costs may need to be considered separately.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost of a product or service when determining its selling price. It is commonly expressed as a percentage of cost.
What is the formula for markup percentage?
The formula is:
Markup % = (Selling Price − Cost Price) ÷ Cost Price × 100
What is the difference between markup and margin?
Markup uses the cost as its base, while profit margin uses the selling price as its base.
If my cost is $100 and markup is 50%, what is the selling price?
A 50% markup adds $50 to the $100 cost, giving a selling price of $150.
Can I calculate markup from the selling price?
Yes. Select Markup from Cost & Selling Price, enter the cost and selling price, and the calculator will calculate the markup amount and percentage.
Can markup be 0%?
Yes. A 0% markup means the calculated selling price is equal to the cost price.
Can markup be negative?
Yes. If the selling price is below the cost price, the calculator will show a negative markup percentage.
Does markup equal profit?
Not necessarily. Markup is based on the difference between selling price and cost, while actual business profit can be affected by many other expenses.
What currencies are supported?
The calculator supports INR, USD, EUR, GBP, AUD, and CAD.
Disclaimer: This calculator is provided for general informational purposes. Actual pricing and profitability can vary depending on operating costs, taxes, fees, discounts, shipping, and other business expenses.