WorkedMathGlossary

Markup Calculator

Enter a cost and markup percentage below to instantly get the selling price.

Selling Price
$60
Markup adds $20

How to Calculate Markup

Selling price = cost + (cost × markup %).

A well-known retail mistake is setting prices by applying a target margin percentage as if it were a markup percentage. Aim for a 40% profit margin but price using a 40% markup instead, and the actual margin comes out lower than intended — see the second example below, where a 40% markup only produces a 28.6% margin.

Worked example

A $40 cost with a 50% markup.

Markup: 40 × 0.50 = $20

Selling price: 40 + 20 = $60

A second example: a $25 cost with a 40% markup.

Markup: 25 × 0.40 = $10, so the selling price is 25 + 10 = $35.

Margin check: 10 ÷ 35 ≈ 28.6%, not 40%

Keep going

  • Markup and margin describe the same profit from two different bases -- cost versus selling price; the margin calculator converts between the two automatically. Margin Calculator
  • Markup raises a cost by a percentage to set a price; discount lowers a price by a percentage instead, and the discount calculator runs that same math in reverse. Discount Calculator

Frequently Asked Questions

How do you calculate markup?

Multiply the cost by the markup percentage (as a decimal) to get the markup amount, then add that to the cost to get the selling price.

Is markup the same as profit margin?

No. Markup is calculated as a percentage of cost, while margin is calculated as a percentage of the selling price. A 50% markup and a 50% margin give different prices.

What markup percentage gives a 50% profit margin?

A 100% markup gives a 50% margin. Margin = markup ÷ (1 + markup), so a markup of 1.0 (100%) gives a margin of 1.0 ÷ 2.0 = 0.5 (50%).

How do you convert a target profit margin into the right markup percentage?

Use markup = margin ÷ (1 − margin). For a target margin of 25%, the markup needed is 0.25 ÷ 0.75 ≈ 33.3%. Checking it: a $100 cost with a 33.3% markup sells for $133.33, and 33.33 ÷ 133.33 ≈ 0.25, which is the 25% margin you were aiming for.

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