The markup calculator helps you determine how much you are adding to the cost of a product or service to arrive at its selling price. Enter your cost and selling price to calculate the markup percentage and profit per sale.
What Is Markup?
Markup is the amount added to the cost of a product or service to determine its selling price. It is usually expressed as a percentage of the original cost.
For example, if a product costs $100 and you sell it for $150, your profit is $50 and your markup is 50%.
Markup Formula
The markup percentage is calculated using:
Markup % = ((Selling Price − Cost) ÷ Cost) × 100
The profit per sale is:
Profit = Selling Price − Cost
How to Use the Markup Calculator
- Enter your Cost.
- Enter your Selling Price.
- Click Calculate Markup.
- Review your markup percentage and profit.
Example
Suppose a product costs $100 and sells for $150.
Profit:
$150 − $100 = $50
Markup:
($50 ÷ $100) × 100 = 50%
The markup is therefore 50%.
Markup vs. Profit Margin
Markup and profit margin are related but they are not the same calculation.
Markup compares profit with cost, while profit margin compares profit with revenue or selling price.
For example, a $100 product sold for $150 has:
- 50% markup
- 33.33% profit margin
Understanding the difference is important when setting prices and evaluating profitability.
Frequently Asked Questions
What is a good markup percentage?
There is no single markup percentage that works for every business. The appropriate markup depends on your costs, industry, competition, customer demand and desired profitability.
How do I calculate markup?
Subtract your cost from your selling price, divide the result by your cost, and multiply by 100.
Is markup the same as profit margin?
No. Markup is calculated from cost, while profit margin is calculated from selling price or revenue.
Can markup be negative?
Yes. If the selling price is below the cost, the result is a negative markup, meaning the sale produces a loss.
