Finance

Markup Calculator

Start with what an item costs you, add the markup you want, and get the price to charge along with the profit on every sale.

Selling price
$60.00
Profit per unit
$20.00
Resulting margin
33.33%

How it works

Markup is a percentage of your cost. A $40 item at 50% markup adds $20 of profit, so you'd list it at $60. The calculator applies the percentage and hands back both the price and that $20.

It also shows the margin the price produces, which trips people up. That same $60 sale is a 50% markup but only a 33.3% margin, because margin measures profit against the price instead of the cost.

Nudge the markup up or down and the price moves with it in real time, which is handy when you're testing where a product should land. Just remember markup and margin are different lenses on the same profit.

Frequently asked questions

How do I calculate selling price from markup?

Multiply the cost by the markup percentage to get the profit, then add it back to the cost. A $25 item at 40% markup earns $10, landing at a $35 selling price.

Why is my markup higher than my margin?

Markup divides profit by the smaller number — your cost — while margin divides it by the larger selling price. Same dollars, smaller denominator, bigger percentage. A 50% markup is always a 33.3% margin.

What's a typical markup?

It swings hard by industry. Grocery items might run 10-15%, while restaurant drinks and jewelry can clear 300%. Your own floor is whatever covers overhead and still leaves profit after every cost.