Markup Calculator

Markup tells you how much you have added above your cost when pricing a product or service. Retailers use it to set shelf prices from wholesale invoices, contractors use it to quote jobs above material and labor costs, and wholesalers use it to set tiered pricing for different customer segments. Understanding markup is especially important because it is often confused with margin — a 50% markup does not mean a 50% margin. For the same transaction, markup is always a higher percentage than the equivalent profit margin, because markup divides by the smaller cost figure while margin divides by the larger selling price. This calculator shows both at once so you can price strategically and avoid underpricing errors. It is also useful for reverse-engineering competitor pricing, verifying that a supplier's suggested retail price leaves enough room for your overhead, and checking whether a planned discount still preserves a minimum acceptable profit margin. To find a target selling price from a desired markup, multiply cost by (1 + markup as a decimal). Setting markup levels correctly from the start protects profitability even as costs fluctuate, and reviewing markup percentages periodically helps ensure your pricing strategy keeps pace with changes in material, labor, or overhead expenses.

Markup percentage expresses how much you have added above your cost, measured as a fraction of that cost. The formula is: Markup (%) = (Selling Price − Cost) ÷ Cost × 100. First, profit is determined by subtracting cost from selling price. That profit is then divided by cost — not by selling price — and multiplied by 100. Because the denominator (cost) is smaller than the denominator used for margin (selling price), markup percentages are always higher than margin percentages for the same transaction. The calculator also displays the equivalent profit margin so you can see both perspectives at once. To find a selling price from a target markup, multiply cost by (1 + markup as a decimal): for a 50% markup on $60, the price would be $60 × 1.50 = $90.