Business & Marketing

Markup Calculator

Calculate selling price, profit per unit, markup percentage and gross margin from the numbers you already know. Choose markup, target margin or an existing selling price as your starting point and the remaining values update automatically.

UFBuilt and maintained by Umer Farooq, founder & developer of CalcsDone
Updated September 20, 2026Formulas documented below
Quick answer

Markup measures profit relative to cost: (selling price − cost) ÷ cost × 100. Gross margin measures the same gross profit relative to selling price: (selling price − cost) ÷ selling price × 100. Because the denominators differ, the percentages are not interchangeable.

Enter values
Price = Cost × (1 + Markup ÷ 100)
$
%
Sample inputs
Selling price
$0.00
per unit
Gross profit
$0.00
per unit
Markup
0.0%
of cost
Gross margin
0.0%
of selling price
Calculation breakdown
Enter valid values above to calculate.
  1. Enter valid values to see the calculation.
Planning estimate only. The result is arithmetic based on the cost figure you enter. It does not automatically include taxes, shipping, platform fees, payment-processing fees, discounts, returns, fixed overhead or other expenses. “Gross profit” and “gross margin” here therefore refer only to the entered unit cost and selling price, not necessarily your accounting statements.
How it works

Markup and Margin Use Different Bases

The key distinction is whether gross profit is divided by cost or by selling price.

Markup percentage

Markup % = (Price − Cost) ÷ Cost × 100. Markup expresses the amount above cost as a percentage of cost.

Price from markup

Price = Cost × (1 + Markup ÷ 100). A 50% markup on a $100 cost produces a $150 price.

Gross margin percentage

Margin % = (Price − Cost) ÷ Price × 100. With a $100 cost and $150 price, gross margin is 33.33%.

Price from target margin

Price = Cost ÷ (1 − Margin ÷ 100). A target margin must be below 100% when cost is greater than zero.

Reference chart

Markup-to-Margin Conversion Table

For a $100 cost, this table shows the corresponding selling price and gross margin at several markup percentages.

MarkupPrice on $100 costGross profitGross margin
10%$110.00$10.009.09%
20%$120.00$20.0016.67%
25%$125.00$25.0020.00%
30%$130.00$30.0023.08%
40%$140.00$40.0028.57%
50%$150.00$50.0033.33%
75%$175.00$75.0042.86%
100%$200.00$100.0050.00%
150%$250.00$150.0060.00%
200%$300.00$200.0066.67%
Worked examples

Markup Calculator Examples

These examples use the same formulas as the calculator.

Example 1

Price from markup

Cost$40.00
Markup100%
Gross profit$40.00
$80.00 price

$40 × (1 + 1.00) = $80. The resulting gross margin is 50%.

Example 2

Price from target margin

Cost$75.00
Target margin40%
Gross profit$50.00
$125.00 price

$75 ÷ (1 − 0.40) = $125. The equivalent markup is 66.67%.

Example 3

Markup from existing price

Cost$50.00
Selling price$80.00
Gross profit$30.00
60.00% markup

$30 ÷ $50 = 60% markup. Gross margin is $30 ÷ $80 = 37.50%.

Interpretation

What the Result Does — and Does Not — Tell You

A markup calculation is useful for translating an entered cost into a price or measuring how far an existing price sits above cost. It does not determine whether that price is commercially appropriate. Demand, competition, discounts, taxes and the full cost structure can all affect a pricing decision.

If you want the calculator to reflect more of the economic cost of a unit, first build the relevant per-unit expenses into the cost input. Keep in mind that fixed costs and volume-dependent costs may require separate analysis rather than simply adding a flat amount.

Common mistakes

Markup Calculator Mistakes to Avoid

!

Confusing markup with gross margin

A 50% markup on $100 cost creates a $150 price, but gross margin is 33.33%, not 50%.

!

Leaving relevant costs out of the input

If your entered cost excludes expenses you intend the selling price to recover, the displayed gross profit will overstate what remains after those expenses.

!

Entering a target margin of 100% or more

For a positive cost, the price-from-margin formula has no finite positive selling price at a 100% margin. The calculator rejects margin inputs of 100% or greater.

!

Assuming one markup is right for every product

The formula calculates a price from your chosen percentage; it does not establish an industry benchmark or recommend a particular markup.

FAQ

Markup Calculator FAQ

How do I calculate markup percentage?+
Subtract cost from selling price to get gross profit, divide that amount by cost, then multiply by 100. For example, a $150 price and $100 cost produce a 50% markup.
Why is markup different from gross margin?+
Markup divides gross profit by cost. Gross margin divides gross profit by selling price. The same dollar profit therefore produces different percentages.
What markup gives a 50% gross margin?+
With positive cost, a 50% gross margin corresponds to a 100% markup. A $100 cost would require a $200 selling price, producing $100 gross profit.
Can markup exceed 100%?+
Yes. Markup is measured relative to cost, so it can exceed 100%. For example, a $100 cost sold for $300 has a 200% markup and a 66.67% gross margin.
Does this calculator include tax, shipping or fees?+
No. It uses only the cost, percentage, selling price and optional quantity you enter. Add relevant per-unit costs to your cost input when appropriate, or analyze them separately.
Is the result a recommended selling price?+
No. It is a mathematical result based on your inputs. Pricing decisions can also depend on demand, competition, taxes, discounts, overhead and other business considerations.
About this calculator

How This Calculator Is Maintained

UF

Umer Farooq

Founder & Developer, CalcsDone

This page documents the formulas used by the calculator, provides reproducible worked examples and links to references for the accounting concepts involved. It does not claim accountant review or professional financial advice.

Read the CalcsDone Methodology →
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Sources & methodology

Formula References

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