CalculatorMarkup
Calculate the markup percentage on any product or service by entering the cost and selling price with this free online markup calculator. Markup is the foundation of cost-plus pricing — a strategy where businesses add a fixed percentage above cost to determine the selling price. Retailers, wholesalers, manufacturers, and service businesses use markup calculations daily to ensure pricing is consistent, profitable, and competitive.
Use Markup Tool in Seconds
Markup Calculator
Interactive calculator engine
Markup is based on cost: (selling price - cost) / cost × 100.
How To Use Markup Calculator
- Enter the cost amount — what you pay to produce or acquire the product or service.
- Enter the selling price — what you charge the customer.
- The tool calculates markup as (Selling Price − Cost) ÷ Cost × 100.
- Review the markup percentage result, which shows how much above cost you are pricing.
- Compare the markup against your industry benchmarks to verify competitive and profitable positioning.
Frequently Asked Questions
What is markup?
Markup is the percentage added to the cost of a product to arrive at its selling price. The formula is: Markup = (Selling Price − Cost) ÷ Cost × 100. For example, if a product costs $20 and sells for $30, the markup is ($30 − $20) ÷ $20 × 100 = 50%. This means you marked up the cost by 50% to set the price.
Can this help with pricing strategy?
Yes. Markup is one of the primary methods businesses use to price products. By knowing your target markup percentage (based on industry norms and overhead requirements), you can consistently set prices that cover all costs and generate a predictable profit on every sale. Entering different cost values with the same markup percentage quickly scales pricing across an entire product range.
What is the difference between markup and margin?
Markup is expressed as a percentage of cost, while margin is expressed as a percentage of selling price. These two measures describe the same gap between cost and price but from different reference points. A 100% markup means selling price is double the cost — but that corresponds to a 50% margin, not 100%. Always clarify which metric is being referenced when discussing pricing with different teams or stakeholders.
What markup percentage should I use for my products?
Appropriate markup percentages vary significantly by industry and business model. Retail clothing commonly uses 50–100% markup. Wholesale businesses use lower markups (10–30%). Restaurants often markup food by 300–400% to cover labor and overhead. Independent contractors frequently mark up materials by 15–25%. Your markup must cover all direct costs, overhead allocation, and leave enough profit after subtracting operating expenses.
How do I convert from markup to margin?
To convert a markup percentage to the equivalent margin percentage: Margin = Markup ÷ (1 + Markup). For example, a 50% markup converts to 50 ÷ (1 + 0.5) = 50 ÷ 1.5 = 33.3% margin. To convert margin to markup: Markup = Margin ÷ (1 − Margin). A 33.3% margin converts to 0.333 ÷ (1 − 0.333) = 0.333 ÷ 0.667 = 50% markup.
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