Markup Calculator: Cost Markup Percentage & Selling Price

Calculate percentage markup on cost, examine the corresponding profit margin, or input target markup to solve for required retail selling price.

Enter Calculation Values

What you paid to manufacture or purchase the item.
$
The customer retail price you charge.
$

Calculation Results

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Calculated Markup
50.00%
  • Gross Profit: $25.00
  • Cost Markup (% on cost): 50.00%
  • Profit Margin (% on price): 33.33%

Markup Calculation Formulas

Profit = Selling Price - Cost
Markup (%) = (Profit / Cost) × 100
Profit Margin (%) = (Profit / Selling Price) × 100
Selling Price from Markup = Cost × (1 + Target Markup % / 100)
Worked Example: If product cost is $50.00 and selling price is $75.00:
1. Profit = $75 - $50 = $25.00
2. Markup = ($25 / $50) × 100 = 50.00%
3. Profit Margin = ($25 / $75) × 100 = 33.33%

Frequently Asked Questions

Why is markup always higher than profit margin?

Because cost is smaller than selling price (assuming a profit), dividing by the smaller number produces a higher percentage.

Can markup be over 100%?

Yes. A 100% markup doubles the cost (e.g. $10 cost sold for $20). A 200% markup triples the cost ($10 cost sold for $30).

Related Calculators & Resources

  • Profit Margin Calculator — Determine exact net profit and profit margin percentage from revenue and total costs. Accurately detect losses and analyze cost breakdown ratios.
  • Product Pricing Calculator — Solve for the exact retail selling price needed to hit your target profit margin after deducting manufacturing, packaging, shipping, and payment processing fees.
  • Break-Even Calculator — Find the minimum sales volume and revenue required to balance fixed overhead and per-unit variable costs.

Helpful Reading

Learn more about strategic pricing in our guide: Business Pricing Masterclass.