Markup Calculator
Set a selling price by applying a markup percentage to your cost.
Formula
About this calculator
A markup calculator works out the selling price you should charge once you add a chosen markup to your cost. Markup is the most intuitive way most businesses set prices — you take what a product costs you and add a percentage on top to cover overhead and generate profit — and this tool makes that calculation instant while also showing the profit and margin that result.
The formula is straightforward: multiply your cost by one plus the markup percentage. A 70 dollar cost with a 30 percent markup produces a 91 dollar price and 21 dollars of profit. Crucially, the calculator also reports the profit margin that this markup creates, because the two are not the same number — a 30 percent markup yields only about a 23 percent margin, since margin is measured against the higher selling price.
Choosing the right markup is a balance. Too low and you fail to cover overheads or leave no cushion for discounts; too high and you risk pricing yourself out of the market. Many industries have conventional markup ranges, but the right figure for you depends on your costs, your competition and the value customers place on what you sell.
Because the calculator shows price, profit and margin together, it's a fast way to reverse-engineer pricing decisions: adjust the markup until the resulting margin hits the target your business needs. Every figure comes directly from the cost and markup you enter, so you can experiment freely without any hidden assumptions.
Frequently asked questions
How do you calculate markup?
Multiply your cost by the markup percentage and add it to the cost. A 30% markup on a $70 cost adds $21, giving a $91 selling price.
What is the difference between markup and margin?
Markup is the profit as a percentage of cost; margin is the profit as a percentage of the selling price. A given markup always produces a smaller margin percentage.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). For example, a 30% markup equals a 23% margin. This calculator shows both automatically so you don't have to convert manually.
What markup should I use?
It depends on your overheads, competition and industry norms. Set the markup so the resulting margin covers your costs and target profit — the calculator shows that margin instantly.
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⚠️ This tool calculates price and profit from the cost and markup you enter and is for general business planning, not accounting or tax advice.