Markup Calculator

How to use the Markup Calculator

Measure profit relative to product cost. Enter the cost and selling price of the same item, using consistent tax treatment.

Formula

Profit = price − cost; markup (%) = profit ÷ cost × 100.

Worked example

A $130 cost and $200 selling price give $70 profit. Markup is 70 ÷ 130 × 100 = 53.85%, while margin is 35%.

Interpretation and limitations

Cost must be positive. A negative markup means the item sells below its entered cost. Include landed costs when you want a markup on your actual acquisition cost.

Markup questions

Does 50% markup mean 50% margin?

No. A $100 cost with 50% markup sells for $150; its margin is $50 ÷ $150 = 33.33%.

Can I use this to set a price?

This tool measures markup from an existing price. For pricing to a target margin, use the product pricing calculator.

Continue your calculation

For the next step, use the Profit Margin Calculator or the Product Pricing Calculator. Review each tool’s input definitions before carrying a result into another calculation.

Frequently asked questions

Is this calculator free?

Yes. It runs in your browser and does not require an account.

How should I use the result?

Use the result as a planning estimate and verify business-critical decisions against your source records.