Result
Finance calculations are estimates based on the values and assumptions you enter. They are not financial, tax, lending or investment advice. Verify the terms, rates, fees and local rules that apply to your situation.
About this tool
Markup Calculator
A pricing calculator for understanding markup on cost and profit margin on selling price. Use it to compare the two percentages and avoid the common mistake of treating a markup percentage as the same thing as a margin percentage.
What This Markup Calculator Does
Calculate markup, profit and selling price from cost and selling price assumptions.
Inputs and What They Mean
Enter the cost and selling price. The calculator shows the absolute profit, markup percentage and corresponding profit margin.
How the Calculation Works
Markup is calculated as profit divided by cost. If cost is 70 and selling price is 100, profit is 30 and markup is 30/70, while margin is 30/100. This distinction is essential when setting prices.
How to Use the Calculator
- Enter the values that describe your situation.
- Check the units, frequency and assumptions shown beside each field.
- Choose any available mode or calculation target before calculating.
- Select Calculate and review the result card.
- Change one assumption at a time when comparing scenarios.
How to Interpret the Result
Use markup when building a price from a known cost base. Compare the resulting margin as well, because a markup target does not translate directly to the same percentage margin.
Important Assumptions and Limitations
Pricing decisions can also depend on shipping, taxes, payment fees, discounts, returns, overhead and market demand. Include the costs relevant to your own pricing model.
Practical Planning Tip
Use the calculator as a scenario-testing tool. Save or compare a conservative case, a base case and a more optimistic case instead of relying on a single projection. For financial decisions, verify rates, fees, taxes, contractual terms and local rules with the relevant provider or official source.
Questions & Answers
Frequently Asked Questions
Can markup be greater than 100%?
Yes. Markup is measured against cost, so a selling price more than twice the cost produces a markup above 100%.