Free Business Calculator
Markup Calculator
Calculate markup, profit, and profit margin instantly from your cost and selling price.
Enter your numbers
Enter your product cost and selling price to calculate profit, markup, and profit margin.
The amount it costs you to produce or buy the product.
The price your customer pays.
Results
Enter your cost and selling price to see the results.
What is markup?
Markup is the percentage added to a product's cost to determine its selling price. It shows how much higher the selling price is compared with the original cost.
Businesses commonly use markup when setting prices because it provides a simple way to account for costs and target a desired level of profit.
How to calculate markup
First, subtract the cost from the selling price to calculate profit. Then divide the profit by the cost and multiply the result by 100.
Profit = Selling Price − Cost
Markup (%) = Profit ÷ Cost × 100
Markup example
Suppose a product costs $60 and sells for $100. The profit is $40.
Cost: $60
Selling Price: $100
Profit: $40
Markup: 66.67%
Profit Margin: 40%
Markup vs. profit margin
Markup and profit margin both measure profitability, but they use different starting points. Markup compares profit with cost, while profit margin compares profit with selling price or revenue.
For example, if a product costs $60 and sells for $100, its markup is 66.67%, while its profit margin is 40%.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is calculated as profit divided by cost. Profit margin is calculated as profit divided by selling price or revenue. Because they use different bases, the percentages are different.
Can markup be more than 100%?
Yes. If the profit is greater than the original cost, the markup will be greater than 100%.
Can markup be negative?
Yes. If the selling price is lower than the cost, the markup becomes negative because the sale produces a loss.