Markup Calculator

Markup is the amount added to the cost of a product or service to arrive at its selling price. It is expressed as a percentage of the cost. For example, if a product costs $50 and you add a 40% markup, the selling price becomes $70.

The markup formula is: Markup (%) = (Profit / Cost) × 100, where Profit = Revenue − Cost. Equivalently, Revenue = Cost × (1 + Markup / 100). This lets you derive any one value if you know the other two.

To find markup percentage, subtract cost from revenue to get profit, then divide profit by cost and multiply by 100. For example, if cost is $40 and revenue is $50, profit is $10, and markup = ($10 / $40) × 100 = 25%.

Markup is profit expressed as a percentage of cost, while gross margin is profit expressed as a percentage of revenue. The same dollar profit will always produce a higher markup percentage than margin percentage. For example, a $20 profit on a $50 cost is a 40% markup but only a 28.57% margin.

A 100% markup means the selling price is exactly double the cost. If an item costs $30 and you apply a 100% markup, the selling price is $60, yielding $30 in profit. This corresponds to a 50% gross margin.

With a 40% markup on a $50 cost, your profit is $50 × 0.40 = $20, and the selling price (revenue) is $50 + $20 = $70. Your gross margin in this case is $20 / $70 ≈ 28.57%.

Multiply the cost by (1 + markup / 100). For example, a cost of $80 with a 25% markup gives a selling price of $80 × 1.25 = $100. This formula is the basis of most retail and wholesale pricing strategies.

Markup percentages vary widely by sector. Retail clothing often uses 100–200%, grocery items 10–25%, electronics 10–30%, and restaurants 200–300% on food costs. The right markup for your business depends on overhead, competition, and target margin.