Finance
Markup Calculator
Work out the right selling price from your cost and target markup percentage, and see the resulting profit margin. Free and instant, no signup.
Enter a cost and markup % to get your selling price.
✳ Free · No signup · Runs in your browser — we never store your numbers
Small business guide
What this tool helps you do
Use this markup calculator when you know your cost and want to add a target markup to reach a selling price. It also shows the resulting profit margin, because markup alone can be misleading.
This is useful for retailers, contractors, agencies, makers, wholesalers, restaurants, and service businesses that set prices from a known cost base and need the numbers fast.
How to use this tool
- 1
Enter your total cost to deliver the item or service (materials, labor, fees, etc.).
- 2
Enter the markup percentage you want to apply on top of cost.
- 3
See the suggested selling price, your gross profit, and the actual profit margin that markup produces.
- 4
Adjust the markup up or down until the margin looks healthy for your business.
Formula
Selling price = cost + (cost × markup % ÷ 100). Gross profit = selling price − cost. Profit margin = gross profit ÷ selling price × 100.
- Markup is always calculated on cost.
- The resulting margin will always be lower than the markup percentage (a 100% markup gives 50% margin).
- Use the profit margin number to judge whether the price covers your real overhead and leaves profit.
Examples
Simple retail item
You buy a product for $25 and want a 100% markup.
Inputs
- Cost: $25
- Markup: 100%
Result
Selling price: $50. Gross profit: $25. Profit margin: 50%.
A 100% markup sounds aggressive but only leaves you with half the revenue as gross profit.
Service business quote
A freelancer estimates $400 of direct time and expenses on a project and applies 75% markup.
Inputs
- Cost: $400
- Markup: 75%
Result
Selling price: $700. Gross profit: $300. Profit margin: ~42.9%.
The 75% markup produces a healthy 43% margin, which still has to cover taxes, software, marketing, and your own salary.
Key terms
Markup
The percentage added to cost to arrive at the selling price.
Gross profit
The dollar amount left after subtracting cost from the selling price.
Profit margin
Gross profit as a percentage of the final selling price.
How to interpret the result
Markup is a pricing rule, margin is the reality check
Many small businesses use simple markup rules ("double my costs"). Always convert the result to margin so you know what percentage of customer revenue you actually keep.
Higher markup does not always mean higher margin impact
On low-cost items, a very high markup can still produce modest dollar profit. On high-cost items, even a modest markup can create substantial profit.
Test different markups against your target margin
If you need at least 40% margin after variable costs, back into the required markup (roughly 67% markup produces ~40% margin).
Common mistakes
- Assuming a 50% markup equals a 50% margin.
- Forgetting that the final price must still leave room for discounts, returns, payment fees, and overhead.
- Applying the same markup percentage to every product without checking the resulting margin on high-cost vs low-cost items.
Frequently asked questions
What markup should I use for my small business?+
Common rules of thumb: retail 50–100%, restaurants/food 100–300% on ingredients, professional services 50–150% on direct costs. The only way to know is to model your real numbers and see what margin remains after all costs.
Why does my 80% markup only show 44% margin?+
Because markup is added to cost and margin is calculated on the selling price. An 80% markup on $100 cost gives a $180 selling price. Profit of $80 on $180 revenue = 44.4% margin.
Should I price from markup or from margin?+
Start with markup if your costs are stable and you have a simple rule. Always verify the final margin. If your goal is "I want to keep 45% of revenue," solve backwards for the required markup.