Markup Calculator
From the cost and a markup percentage, work out the selling price, profit per unit and the corresponding profit margin.
Input Data
Results
At a glance:Markup is profit expressed as a percentage of cost. For cost C and markup% k: selling price = C × (1 + k ÷ 100); profit = C × k ÷ 100; margin% = profit ÷ selling price × 100. Markup and margin differ because their denominators differ.
Formula
Selling price = cost × (1 + markup% ÷ 100).
Profit = cost × markup% ÷ 100.
Margin% = profit ÷ selling price × 100.
$$\text{Selling Price} = \text{Cost} \times \left(1 + \dfrac{\text{Markup \%}}{100}\right)$$$$\text{Margin \%} = \dfrac{\text{Selling Price} - \text{Cost}}{\text{Selling Price}} \times 100\%$$How to Use
- Enter the unit cost.
- Enter the markup percentage.
- Read the selling price, profit and margin.
FAQ
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. For the same item, the markup is always higher than the margin. For example, a 25% markup corresponds to a 20% margin; a 100% markup corresponds to a 50% margin. Be clear which basis you use when pricing or reporting.
How much markup is reasonable?
It depends on the industry and operating costs. Fast-moving retail may mark up only 10%–20%, but you must subtract rent, wages, shrinkage and tax before you see net profit; luxury goods and services can carry much higher markups. A good rule is to first work out all operating expenses and make sure the markup covers them with net profit left over.
I know the selling price and cost and want the margin — which calculator do I use?
Use the Margin Calculator. Enter the selling price and cost and it returns the gross profit, margin and markup, letting you switch between the two pricing mindsets.
How should I set a reasonable markup rate?
There is no universal 'right number' — it depends on the industry, cost structure, brand positioning, competition and operating costs. The key principle: the markup (gross profit) must cover all expenses beyond the purchase cost — rent, payroll, utilities, marketing — and still leave your target net profit. Industry norms vary hugely: thin-margin high-volume retail may use 10%–20%; apparel, boutiques and dining are usually higher (tens of percent or more) because of higher rent, labour and inventory risk; branded or designer goods with pricing power can be very high. Practically, estimate the operating cost to be allocated per item plus your target net profit per item; their combined ratio to cost is the minimum markup you need, then adjust toward a level that is both profitable and competitive, leaving a buffer for discounts and returns. Never set a markup by gut feel, and do not mistake a markup for a margin and overstate your profit.
Markup vs margin calculator — which should I use?
If you know the selling price (revenue) and the cost and want the gross profit, margin and markup in reverse, use the Margin Calculator, not this one. The two are opposite sides of the same coin. The Markup Calculator starts from cost: you enter cost and markup% and it gives selling price, profit and margin — ideal when pricing ('I bought it for this, want to add this much, what should I sell it for'). The Margin Calculator starts from selling price and cost: enter those and it gives gross profit, margin and markup — ideal when analysing an existing transaction ('I sold it for this, it cost this, what did I actually earn'). For cost HK$80 and price HK$100, the Margin Calculator tells you gross profit HK$20, margin 20% and markup 25%. Their logic is interchangeable; only the input/output direction differs. Understanding that markup uses cost as its denominator and margin uses price as its denominator is the key to using both correctly.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.