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.
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.
Price = Cost × (1 + Markup ÷ 100)- Enter valid values to see the calculation.
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.
Markup-to-Margin Conversion Table
For a $100 cost, this table shows the corresponding selling price and gross margin at several markup percentages.
| Markup | Price on $100 cost | Gross profit | Gross margin |
|---|---|---|---|
| 10% | $110.00 | $10.00 | 9.09% |
| 20% | $120.00 | $20.00 | 16.67% |
| 25% | $125.00 | $25.00 | 20.00% |
| 30% | $130.00 | $30.00 | 23.08% |
| 40% | $140.00 | $40.00 | 28.57% |
| 50% | $150.00 | $50.00 | 33.33% |
| 75% | $175.00 | $75.00 | 42.86% |
| 100% | $200.00 | $100.00 | 50.00% |
| 150% | $250.00 | $150.00 | 60.00% |
| 200% | $300.00 | $200.00 | 66.67% |
Markup Calculator Examples
These examples use the same formulas as the calculator.
Price from markup
$40 × (1 + 1.00) = $80. The resulting gross margin is 50%.
Price from target margin
$75 ÷ (1 − 0.40) = $125. The equivalent markup is 66.67%.
Markup from existing price
$30 ÷ $50 = 60% markup. Gross margin is $30 ÷ $80 = 37.50%.
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.
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.
Markup Calculator FAQ
How do I calculate markup percentage?+
Why is markup different from gross margin?+
What markup gives a 50% gross margin?+
Can markup exceed 100%?+
Does this calculator include tax, shipping or fees?+
Is the result a recommended selling price?+
How This Calculator Is Maintained
Umer Farooq
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.
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