Finance · Business & Sales

Markup Calculator

Enter what a product costs you and the markup you want to add to see the selling price and the profit that markup produces.

Methodology reviewed Jul 14, 20262 primary sourcesHow it worksInputs stay on this device
Your inputs

Cost and markup

What the product or service costs you, up to $1 billion.

The percentage added on top of cost, from 0% through 100,000%.

Your inputs are calculated locally and are not stored.
Selling price$90.00

A 50% markup on $60.00 of cost adds $30.00 of profit.

Profit
$30.00
Cost
$60.00
Formula & methodology

How markup pricing works

Markup is the amount added on top of cost, expressed as a percentage of that cost. Multiply the cost by the markup percentage to get the profit, then add it back to the cost to get the selling price. Markup is a quick way to price from cost, but it is not the same as gross margin, which measures profit against the selling price instead.

Selling price = Cost × (1 + Markup% / 100)
Profit = Cost × (Markup% / 100)
Cost
What the item costs you
Markup%
Percentage added on top of cost
Worked example

$60 cost, 50% markup

Suppose an item costs you $60 and you apply a 50% markup. The profit is $60 × 0.50 = $30, and the selling price is $60 + $30 = $90. Note that a 50% markup here is a 33.33% gross margin, because $30 profit is one-third of the $90 selling price.

This is an educational calculation based only on the values you provide. It is not accounting or tax advice.

Assumptions

What this calculator assumes

  • Cost is your total cost of goods for the unit, before overhead that is not tied to the item.
  • Markup is applied as a flat percentage of cost, the same for every unit.
  • No taxes, such as sales tax or income tax, are modeled.
  • Money values are rounded to the nearest cent for display.
Common questions

Markup FAQ

Is markup the same as margin?

No. Markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. A 50% markup on a $60 cost is a 33.33% margin, because the $30 profit is measured against the $90 price rather than the $60 cost.

How do I choose a markup percentage?

Pick a markup that covers your variable costs, contributes to fixed costs and overhead, and leaves the profit you want, while staying competitive. Many businesses back into a target gross margin first, then convert it to the equivalent markup.

Primary sources

Sources and review notes

  1. U.S. Small Business Administration — pricing and financial management guidance
  2. Government of Canada — business pricing and profit guidance

Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.