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Markup Calculator
Markup Pro Elite
Premium pricing optimization and profit strategy
$
%
Retail Selling Price
$0.00
$0.00 Gross Profit
Net Margin
0.00%
Cost Recovery
$0.00
About the Markup Calculator
Markup is the percentage you add to cost to get a selling price. This calculator finds the price for a given markup and shows the resulting profit.
How to use the Markup Calculator
- Enter your Inventory Cost.
- Enter the Desired Markup (%).
- Press Calculate to see the selling price and profit.
Formula and method
Selling price = Cost × (1 + Markup ÷ 100)
The equivalent margin is Markup ÷ (100 + Markup).
Worked example
A $50 item with a 60% markup sells for $80. The profit is $30, which is a 37.5% margin.
Price from cost. A product that costs 80 with a 25% markup sells for 80 × 1.25 = 100.
When to use the Markup Calculator
- Setting a selling price from your cost.
- Working out the markup percentage you already apply.
- Quoting a customer for a job that includes materials.
Common mistakes to avoid
- Thinking a 25% markup gives a 25% margin. It actually gives a 20% margin.
- Applying the markup to the selling price instead of the cost.
Tips
- Markup is based on cost; margin is based on selling price. They give different percentages for the same profit.
Frequently Asked Questions
Markup = profit ÷ cost. Margin = profit ÷ selling price. Margin is always the smaller number.
Markup % = (selling price − cost) ÷ cost × 100.
Margin = markup ÷ (1 + markup). A 25% markup equals a 20% margin.