Free Tools Markup Calculator

A Markup Calculator is a tool used to calculate how much to increase the cost of a product or service to determine its selling price and profit amount.

Markup is commonly used by businesses to set prices based on the cost of goods.

Formula

$$\text{Markup Percentage} = \frac{\text{Selling Price} – \text{Cost Price}} {\text{Cost Price}} \times 100$$Markup Percentage=Cost PriceSelling Price−Cost Price​×100

Where:

• Cost Price = The amount paid to make or buy the product
• Selling Price = The price charged to the customer
• Markup = Selling Price − Cost Price

Example

Suppose:

• Product cost = $50
• Markup = 40%

The markup amount:$$50 \times 0.40 = 20$$50×0.40=20

Selling price:$$50 + 20 = 70$$50+20=70

The product should be sold for $70.

What a Markup Calculator Does

You can enter:

1. Cost price
2. Markup percentage (or selling price)

The calculator can determine:

• Markup amount
• Selling price
• Profit amount
• Profit margin (optional)

Example Table

Cost Price	Markup	Selling Price
$20	25%	$25
$100	50%	$150
$500	30%	$650

Markup vs. Margin

Metric	Formula	Based On
Markup	Profit ÷ Cost	Cost of product
Margin	Profit ÷ Selling Price	Sales revenue

Example:

• Cost = $80
• Selling price = $120
• Profit = $40

Markup:$$40 \div 80 = 50\%$$40÷80=50%

Margin:$$40 \div 120 = 33.3\%$$40÷120=33.3%

Why Use a Markup Calculator?

Businesses use it to:

• Set retail prices.
• Calculate wholesale pricing.
• Maintain target profit levels.
• Avoid selling products below cost.
• Plan pricing strategies.

A Markup Calculator helps answer:

“How much should I add to my cost to achieve the desired selling price and profit?”