Markup Calculator
Markup calculator: set a selling price from cost and markup percent, and see profit and gross margin side by side to avoid underpricing.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Profit
- $20.00
- Gross margin
- 33.33%
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Cost
- 40 $
- Markup
- 50 %
Results
- Selling price
- $60.00
- Profit
- $20.00
- Gross margin
- 33.33%
How does the Markup Calculator work?
Selling price = cost × (1 + markup %). Profit = price − cost. Gross margin = profit / price. A $40 item with a 50% markup sells for $60, earning $20 profit, a 33.3% margin.
Markup is profit as a share of cost and margin is profit as a share of price, so a 50% markup is only a 33.3% margin. Mixing them up under-prices products.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Margin is always lower than markup.
What markup gives a 50% margin?
A 100% markup. Cost $10, price $20, profit $10, which is 50% of the price.
What is a typical retail markup?
Many retailers use keystone pricing, a 100% markup, though grocery runs far lower and jewelry and apparel run higher.
How do I find the markup from price and cost?
Markup % = (price − cost) / cost × 100. A $60 price on a $40 cost is a 50% markup.