Markup Calculator
Calculate the selling price of a product based on cost and desired markup percentage.
Markup Calculator
Calculate profit markup percentage
Markup% = ((Selling - Cost) / Cost) * 100 No calculations yet.
How to Calculate
Selling Price = Cost × (1 + Markup% ÷ 100)
Markup Percentage is calculated by dividing the Profit (Selling Price − Wholesale Cost) by the Wholesale Cost, then multiplying by 100: Markup % = ((Selling Price − Wholesale Cost) ÷ Wholesale Cost) × 100. Conversely, to compute Selling Price from a target markup percentage, use: Selling Price = Wholesale Cost × (1 + Markup % ÷ 100). Note that markup is calculated relative to cost, whereas profit margin is calculated relative to revenue.
* Example: Cost $50, 40% markup → $70
Step-by-Step Manual Calculation Guide
Step 1: Subtract your item cost from the target selling price to calculate gross profit per unit.
Step 2: Divide the gross profit by the item cost to find the markup decimal.
Step 3: Multiply the decimal by 100 to state your markup percentage.
Real-World Industry Applications
Retail Inventory Pricing
Applying a 100% markup (keystone pricing) to a $25 wholesale t-shirt to set a $50 retail price.
Restaurant Menu Costing
Applying a 200% markup on food ingredients costing $4.00 to price an entree at $12.00.
Contractor Service Estimating
Adding a 25% markup to $2,000 worth of construction materials to invoice the client $2,500.
Markup Calculator Worked Examples
How it Works
A markup calculator determines the percentage added to the cost of a product to establish its selling price and cover business overhead. Markup is a vital concept in retail, wholesale, manufacturing, and services because it directly dictates profit margins and competitive pricing strategies.
Related Calculators
Frequently Asked Questions
What is the difference between markup percentage and profit margin?
Markup is the percentage added to the cost price: (Profit ÷ Cost) × 100. Profit margin is the percentage of the selling price that is profit: (Profit ÷ Selling Price) × 100. Markup is always higher than profit margin for the same dollar profit.
What selling price results from a 50% markup on a $40 cost?
A 50% markup on a $40 cost results in a $60 selling price. 50% of $40 is $20; adding $20 to the $40 cost yields $60.
What is 'Keystone Pricing' in retail?
Keystone pricing is a retail industry convention where an item is marked up by exactly 100% over its wholesale cost, effectively doubling the price.
How do I calculate cost if I know selling price and markup percentage?
Divide the selling price by (1 + Markup % / 100). For example, if selling price is $75 and markup is 50%, divide $75 by 1.50 to find the $50 original cost.
Why is markup important for small business owners?
Markup ensures that a business sets retail prices high enough to cover operating expenses (rent, labor, utilities) while producing a sustainable net profit.