Markup Calculator
Calculate markup percentage, markup amount, and selling price from your cost and desired markup.
Selling Price = Cost Price + Markup Amount
How do I calculate markup on a product?
Start with the product’s cost and subtract it from the selling price to find the markup amount. For example, if an item costs $60 and sells for $90, the markup is $30. If you want the markup on a product as a percentage, divide the $30 markup by the $60 cost and multiply by 100, giving a 50% markup.
What is the difference between markup and profit margin?
Markup and profit margin both describe profit, but they use different bases. Markup compares profit with the original cost, while profit margin compares profit with the selling price or revenue. For example, a $20 profit on an $80 cost represents a 25% markup. With a $100 selling price, that same profit represents a 20% profit margin.
Can I calculate markup as a percentage?
Yes. Markup percentage is calculated by dividing the markup amount by the original cost and multiplying by 100. If an item costs $120 and sells for $150, the markup is $30. Therefore, $30 ÷ $120 × 100 = 25%. The percentage tells you how much the selling price has been increased relative to the cost.
How does changing the markup percentage affect the selling price?
A higher markup percentage produces a higher selling price when the cost stays the same. For example, a product costing $100 would sell for $110 with a 10% markup, but $140 with a 40% markup. A lower percentage produces a smaller increase above the original cost. This relationship makes the markup rate an important factor when setting prices.