Markup Calculator

What is a markup calculator?

A markup calculator finds the selling price from a cost and markup percentage, or works out the markup percentage from a cost and a target price. It always shows the gross margin too, because markup and margin are easy to confuse — and the difference changes your profit.

How this calculator works

• In mode 1, enter cost and markup %; the selling price is cost × (1 + markup/100).
• In mode 2, enter cost and a target selling price to back out the markup %.
• It reports profit per unit and gross margin (profit as a % of selling price).
• Both modes show the margin so you can compare apples to apples.

How to use the result

1. Price with markup, but manage the business with margin — margin is what’s left after the sale, and it’s the number lenders and competitors compare.
2. To hit a target margin, use the reverse formula: price = cost ÷ (1 − margin). A 40% margin needs a 66.7% markup — not 40%.
3. Check your markup against your category. Retail groceries run thin (10–20%); speciality goods often support 50%+.
4. Re-price whenever costs change — a $5 cost increase at a fixed markup quietly shrinks your margin.

Markup vs. margin — what’s the difference?

Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. A $20 profit on a $50 cost and $70 price is a 40% markup but only a 28.6% margin. Since margin is relative to the bigger number (price), it’s always smaller — and it’s the one most retailers quote.

Common mistakes

• Treating markup and margin as the same. A 50% markup gives a 33% margin — pricing to a “50% margin” requires a 100% markup.
• Forgetting to re-price after discounts. A 20% sale on a 40% markup product drops the margin to nearly zero.
• Marking up on the wrong base. Markup always applies to cost, never to the selling price.

Markup sits alongside the percentage calculator for discount math and the invoice generator for turning your priced items into billable invoices. If you’re setting freelance rates instead of product prices, the freelance hourly rate calculator covers that side.