Markup Calculator
Determine the selling price and gross profit from your cost and desired markup percentage. See both the dollar profit and resulting margin.
About this Calculator
Determine the selling price and gross profit from your cost and desired markup percentage. See both the dollar profit and resulting margin.
Formula & Calculations
Formula
Selling Price = Cost × (1 + Markup % / 100)Where:
- Selling=Selling price after markup
- Cost=Cost of goods or services
- Markup %=Markup percentage applied to cost
Assumptions
- Assumes a simple percentage markup on cost.
- Does not factor in discounts, promotions, or variable pricing.
- The resulting gross margin percentage is displayed for reference.
Calculation Examples
Example 1
Doubling your cost (100% markup) results in a 50% gross margin on the selling price.
Example 2
A 65% markup on a $15 item gives a selling price of $24.75.
Frequently Asked Questions
How is markup different from margin?
Markup is calculated on cost (profit / cost), while margin is calculated on selling price (profit / selling price). A 100% markup equals a 50% margin. Markup is always higher than the corresponding margin.
What markup should I use for my business?
Common markups vary: retail clothing often uses 100-300% (keystone pricing), restaurants 300%, jewelry 100-400%, and electronics 10-50%. Consider your overhead, competition, and target profit.