Markup Percentage Calculator

Calculate selling price from cost and markup, or work backward from a customer price to find cost, profit, markup percentage, and margin. Use it for retail pricing, ecommerce, wholesale, contractor jobs, and service quotes.

Quick formula
Markup % = (Selling price - Cost) / Cost x 100

Markup Calculator

Real-time
Choose the missing value. The calculator updates the related markup, margin, and profit fields.
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Selling price
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Markup
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Profit
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Margin
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Selling price breakdown

Detailed Markup Results

Markup calculator formula, selling price calculator, and markup vs margin conversion.
Cost
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The amount you pay to make, buy, or deliver the item before markup.

Selling price
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The price charged to the customer before discounts, tax, or shipping.

Gross profit
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Selling price minus cost, before overhead and operating expenses.

Markup percentage
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Profit as a percentage of cost.

Profit margin
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Profit as a percentage of selling price.

Formula used

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Pricing notes

    Markup Examples

    Load a common pricing scenario and see how cost, price, markup, margin, and profit move together.

    Retail item with 50% markup

    A product costs $40 and is priced with a 50% markup, producing a $60 selling price.

    Wholesale 30% margin check

    A $70 cost and $100 price creates a 42.86% markup, but the gross margin is 30%.

    Service job quote

    A service with $125 estimated cost and 60% markup creates a $200 quote before tax.

    Calculate a job markup backwards

    A $450 customer quote with 50% markup supports $300 of labor, materials, and subcontractor cost, leaving $150 gross profit.

    Discount below cost

    A sale price below cost shows negative markup and negative margin, which is useful for clearance decisions.

    How to Use This Online Markup Calculator

    The fastest workflow is to choose the missing value first, then enter the known cost, price, markup, margin, or profit fields.

    1

    Choose what to solve

    Select selling price, cost, markup percentage, profit margin, or profit from the dropdown.

    2

    Enter the known values

    For a selling price markup calculation, enter cost and markup. To work a job quote backwards, choose cost and enter the quoted price plus target markup.

    3

    Compare markup and margin

    Review both percentages because markup uses cost as the base while margin uses selling price.

    4

    Check the pricing note

    Use the result as a gross estimate, then account for tax, fees, discounts, freight, and overhead.

    Retail Markup Calculator Reference

    Use this table to sanity-check common markup percentages before setting a price. The calculator above gives the exact result for your own cost.

    Cost Markup Selling price Gross profit Gross margin
    $20.00 25% $25.00 $5.00 20.00%
    $40.00 50% $60.00 $20.00 33.33%
    $75.00 40% $105.00 $30.00 28.57%
    $120.00 30% $156.00 $36.00 23.08%

    Markup is not the same as margin. A 50% markup creates a 33.33% gross margin because margin is measured against the selling price.

    Markup Calculator Formula

    Markup is a cost-based pricing formula. Margin is a revenue-based profitability formula. Mixing them up is one of the most common pricing mistakes.

    Markup percentage

    Markup % = (Selling price - Cost) / Cost x 100

    Use this when you want profit measured against what the item cost you.

    Selling price from markup

    Selling price = Cost x (1 + Markup % / 100)

    For example, $40 cost with 50% markup becomes $60 selling price.

    Profit margin

    Margin % = (Selling price - Cost) / Selling price x 100

    Margin is lower than markup for profitable sales because selling price is the larger base.

    Cost from price and markup

    Cost = Selling price / (1 + Markup % / 100)

    Use reverse markup when a target selling price is known and you need the implied cost.

    Profit

    Profit = Selling price - Cost

    This is gross profit before overhead, marketplace fees, refunds, and taxes.

    Margin from markup

    Margin % = Markup % / (100 + Markup %) x 100

    Use this shortcut when you know markup and want the equivalent gross margin.

    Markup from margin

    Markup % = Margin % / (100 - Margin %) x 100

    Use this reverse formula when a target margin is required and you need the cost-based markup.

    Markup vs Margin

    Markup and margin both describe profit, but they answer different questions. This table keeps the difference clear.

    Question Markup Margin
    Base number Cost Selling price
    Formula Profit / Cost Profit / Selling price
    Best for Setting a price from known cost Measuring profitability after price is known
    Example $40 cost, $20 profit = 50% markup $60 price, $20 profit = 33.33% margin

    When to Use a Markup Percentage Calculator

    This tool is most useful when price decisions need to be fast, repeatable, and easy to explain.

    Retail pricing

    Estimate shelf price from purchase cost and target markup before planning sales or discounts.

    Ecommerce products

    Compare cost, selling price, and gross profit before adding marketplace fees, shipping, and return costs.

    Wholesale quotes

    Reverse a target price to see whether the implied cost and markup still leave enough margin.

    Service estimates

    Turn labor, material, and subcontractor costs into a quote, or calculate a job markup backwards from the customer price and target percentage.

    Discount planning

    Check whether a sale price still stays above cost after a coupon, seasonal markdown, or clearance discount.

    Marketplace pricing

    Start with gross markup, then separately subtract platform commission, payment fees, shipping supplies, and expected returns.

    Markup Calculator Edge Cases

    These checks help prevent pricing mistakes when cost, price, or margin inputs are unusual.

    Zero cost

    Markup percentage cannot be calculated from zero cost because the formula divides by cost. Use profit or margin instead when the item has no recorded cost.

    Negative markup

    A negative markup means the selling price is below cost. This can happen in clearance, liquidation, or loss-leader pricing, but it should be deliberate.

    Very high markup

    A high markup can be valid for low-cost accessories, specialty services, or high-risk inventory, but compare demand, competitors, and discount plans before relying on it.

    Tax and fees

    This calculator measures gross markup before sales tax, VAT, platform fees, payment processing, shipping, returns, rent, payroll, and other overhead.

    Markup Calculator FAQ

    Answers to common questions about markup percentage, selling price, profit margin, and reverse markup.

    Subtract cost from selling price to get profit, divide that profit by cost, then multiply by 100. The formula is markup percentage = (selling price - cost) / cost x 100.

    Markup measures profit against cost. Margin measures profit against selling price. A $40 cost sold for $60 has 50% markup but 33.33% margin.

    Multiply cost by 1 plus the markup percentage as a decimal. For example, $40 cost with 50% markup is $40 x 1.5 = $60 selling price.

    When the customer price and markup percentage are known, divide the selling price by 1 plus the markup as a decimal. A $450 quote with 50% markup gives a maximum cost of $450 / 1.5 = $300.

    Convert the markup percentage to a decimal, add 1, and multiply by cost. If cost is $80 and markup is 35%, the selling price is $80 x 1.35 = $108.

    A retail markup calculator turns purchase cost into a shelf or online selling price. It helps compare gross profit, margin, and discount room before the product goes live.

    Use markup percentage = margin percentage / (100 - margin percentage) x 100. For example, a 30% margin equals about 42.86% markup.

    Yes. Negative markup means the selling price is below cost. That may happen during clearance or loss-leader promotions, but it should be intentional because it creates a gross loss.

    No. It calculates gross markup from the values you enter. Add taxes, shipping, payment fees, marketplace commissions, and overhead separately when setting a final customer price.

    There is no universal ecommerce markup. Start with landed cost, competitor prices, marketplace fees, fulfillment cost, return risk, and target margin, then test whether customers accept the final price.

    Margin uses selling price as the denominator, while markup uses cost. Because selling price is higher than cost in a profitable sale, the margin percentage is usually lower.

    Ready to calculate markup percentage?

    Enter your cost and target markup, compare the resulting margin, and adjust the price until the gross profit works.

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