Markup Calculator for Selling Price, Profit Margin and Percentage
Calculate selling price from cost and markup, find markup from an existing price, work backward to original cost, or convert between markup and profit margin.
Calculate selling price
Enter cost and the markup percentage you want to add.
What This Markup Calculator Calculates
This markup calculator handles the main pricing calculations in one place. You can start with cost and a markup percentage, work backward from a selling price, or compare markup with profit margin. The tool also shows the dollar markup amount so you can see the result as both a percentage and a price difference.
Markup is based on cost. Profit margin uses selling price or revenue as its base. That difference matters because the same sale produces different markup and margin percentages.
How to Use the Markup Calculator
- Choose a mode. Start with Cost + Markup, Find Markup %, Find Cost, or Margin ↔ Markup.
- Select a currency. Currency changes the displayed money values, not the percentage calculation.
- Enter the known values. Use cost, selling price, markup, or margin according to the selected mode.
- Review the main result. The result panel shows the selling price, markup rate, original cost, or converted percentage.
- Check the supporting figures. Profit amount and equivalent margin help you understand the pricing result.
In the default mode, quantity is optional. It multiplies the per-unit markup amount to estimate total product-level profit for the entered number of units.
What Is Markup in Pricing?
Markup is the amount added to a cost to reach a selling price. Businesses usually express it as a percentage of cost. If an item costs $40 and sells for $60, the dollar markup is $20 and the markup rate is 50%.
A markup percentage answers a practical pricing question: how much above cost is the selling price? It does not tell you what percentage of the selling price is profit. That second percentage is margin.
There is no single markup rate that is right for every business. Pricing also depends on the cost structure, customer demand, competition, and the value of the product or service.
How to Calculate Markup Percentage
To calculate markup percentage, subtract cost from selling price. Divide the difference by cost, then multiply by 100.
Markup % = (Selling Price - Cost) ÷ Cost × 100
Markup calculation example
Cost: $80
Selling price: $100
Markup amount: $100 – $80 = $20
Markup percentage: $20 ÷ $80 × 100 = 25%
The product has a 25% markup because the $20 increase is measured against the $80 cost.
This same equation works for retail products, wholesale items, materials, labor pricing, and other situations where you know a cost and selling price. The important part is using a cost figure that matches the pricing decision you are making.
Markup Formula for Selling Price
If you already know the cost and desired markup rate, you can calculate the selling price directly.
Selling Price = Cost × (1 + Markup Rate)
Convert the markup percentage to a decimal before using the formula. For example, 25% becomes 0.25.
Find selling price from cost and markup
A product costs $64 and you want a 35% markup. Multiply $64 by 1.35. The selling price is $86.40.
The markup amount is $22.40. The resulting profit margin is about 25.93%, because margin is measured against the $86.40 selling price.
Reverse Markup: Find Cost From Selling Price
A reverse markup calculation works backward when you know the selling price and markup percentage. This can help check an existing price or recover the implied cost used in a pricing calculation.
Cost = Selling Price ÷ (1 + Markup Rate)
For a $150 selling price with a 50% markup, divide $150 by 1.50. The original cost is $100 and the markup amount is $50.
Markup vs Margin: Why the Percentages Are Different
Markup and margin use the same dollar profit but divide it by different numbers. Markup divides profit by cost. Margin divides profit by selling price. This is why a 50% markup does not produce a 50% margin.
Markup % = Profit ÷ Cost × 100
Margin % = Profit ÷ Selling Price × 100
If cost is $40 and selling price is $60, profit is $20. The markup is 50% because $20 is half of the $40 cost. The margin is 33.33% because $20 is one-third of the $60 selling price.
Markup to Margin and Margin to Markup Conversion
The conversion mode lets you move between these percentages without entering a price. This is useful when one pricing system uses markup but a report, accountant, or business target uses margin.
Margin = Markup ÷ (1 + Markup)
Markup = Margin ÷ (1 - Margin)
| Markup | Equivalent Margin | Price on $100 Cost |
|---|---|---|
| 10% | 9.09% | $110.00 |
| 20% | 16.67% | $120.00 |
| 25% | 20.00% | $125.00 |
| 33.33% | 25.00% | $133.33 |
| 50% | 33.33% | $150.00 |
| 75% | 42.86% | $175.00 |
| 100% | 50.00% | $200.00 |
A 100% markup doubles cost. A $100 item marked up by 100% sells for $200, giving a 50% margin.
Retail, Product, Labor and Contractor Markup
The arithmetic stays the same across these uses. What changes is the cost you put into the formula.
Retail and product markup
For a purchased product, cost may include the amount paid for the item and other costs you deliberately treat as part of the unit cost. For manufactured goods, the relevant cost can include materials, direct labor, and other production costs used in your accounting method.
Labor markup
A labor markup can be applied when a business starts with a defined labor cost and adds a percentage to set a customer-facing charge. Make sure the cost input reflects the labor-cost basis your business actually uses.
Contractor and material markup
Contractors may use markup when pricing materials, labor, or subcontracted work. The calculator can perform the percentage math, but it does not decide what markup is appropriate for a specific project. Scope, overhead, risk, market conditions, and business goals can affect the price.
What Cost Should You Enter?
The quality of a markup calculation depends on the cost number behind it. For goods held for sale, U.S. tax guidance on cost of goods sold includes items such as purchases, direct labor, materials and supplies, and applicable production costs. Freight-in on merchandise or production materials can also form part of cost of goods sold.
Your pricing model may use a simpler per-unit cost than your formal tax accounting. Be consistent. If one product calculation includes freight and packaging while another does not, comparing their markup rates can give a misleading picture.
The tool is a pricing calculator, not a complete income statement. A positive product markup does not automatically mean the whole business is profitable after overhead, interest, taxes, and other expenses.
Markup Formula in Excel and Google Sheets
You can reproduce the same calculations in a spreadsheet. Assume cell A2 contains cost and B2 contains selling price.
=(B2-A2)/A2
Format the result cell as a percentage. If A2 is $80 and B2 is $100, the result is 25%.
To calculate selling price when A2 contains cost and B2 contains a markup percentage formatted as a percentage:
=A2*(1+B2)
If you enter 25 as a whole number instead of 25%, use =A2*(1+B2/100).
To convert a markup percentage in B2 to an equivalent margin:
=B2/(1+B2)
Common Markup Calculation Mistakes
- Using margin as markup. A 40% margin requires more than a 40% markup.
- Dividing by selling price. That calculates margin, not markup.
- Leaving costs out inconsistently. The percentage is only as useful as the cost basis behind it.
- Assuming markup equals net profit. Product-level markup does not account for every business expense.
- Applying a benchmark without context. Competitive conditions and cost structures vary between businesses.
- Mixing per-unit and total figures. Keep cost and selling price on the same basis.
Markup FAQs
What is the formula for markup percentage?
Subtract cost from selling price, divide the result by cost, then multiply by 100. The formula is: (Selling Price – Cost) ÷ Cost × 100.
How do I calculate selling price from markup?
Convert the markup percentage to a decimal and multiply cost by 1 plus that decimal. A $100 cost with a 25% markup becomes $100 × 1.25 = $125.
What is a 100% markup?
A 100% markup adds an amount equal to the original cost. A $50 cost becomes a $100 selling price. The equivalent profit margin is 50%.
Is markup the same as profit margin?
No. Markup measures profit against cost, while profit margin measures profit against selling price or revenue. The same sale therefore produces different percentages.
How do I convert markup to margin?
Divide the markup rate by 1 plus the markup rate. With decimals, a 0.50 markup becomes 0.50 ÷ 1.50 = 0.3333, or a 33.33% margin.
How do I convert margin to markup?
Divide the margin rate by 1 minus the margin rate. A 40% margin requires 0.40 ÷ 0.60 = 0.6667, or about 66.67% markup.
What is a good markup percentage?
There is no universal percentage that fits every business. The appropriate rate depends on costs, competition, demand, pricing strategy, and the value customers place on the product or service.
Can I use markup for services or labor?
Yes, if you have a defined cost basis for the service or labor. The formula is still profit amount divided by cost. The challenge is making sure the cost figure reflects the inputs relevant to your business.
Sources and Calculation Methodology
Formulas and accounting distinctions reviewed September 9, 2026.
The calculation logic is based on standard markup and margin formulas. Current business guidance was checked against recent U.S. resources, while cost-of-goods-sold context was checked against IRS guidance.