Markup Calculator
Calculate your markup instantly and see how changes in cost or selling price affect your pricing and gross profit.
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How to Use the Markup Calculator
1. Enter your Cost Price — the amount you pay to buy or produce the item.
2. Enter your Selling Price — the price you charge your customer.
3. Enter your Target Markup — the percentage you would like to add above your cost price.
4. Review your results — the calculator will show your gross profit, current markup, gross margin, the selling price required to reach your target markup, and whether you are above or below your target.
What Is Markup?
Markup shows how much you add to the cost of a product or service to arrive at its selling price. It expresses your gross profit as a percentage of the cost price.
Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100
Example: If your cost is 75 and your selling price is 100, your gross profit is 25 and your markup is 33.33%.
Markup vs. Margin: What’s the Difference?
Markup and margin both express gross profit as percentages, but they use different bases.
Markup is calculated as a percentage of the cost price, while gross margin is calculated as a percentage of the selling price.
For example, if an item costs 75 and sells for 100:
Markup = 33.33%
Gross Margin = 25%
Markup (%) = Gross Profit ÷ Cost Price × 100
Gross Margin (%) = Gross Profit ÷ Selling Price × 100
Need to calculate margin instead? Use our Margin Calculator.
Frequently Asked Questions
What is a good markup percentage?
A good markup depends on your industry, product type, operating costs, competition, and pricing strategy. There is no single percentage that works for every business.
The important thing is to make sure your markup leaves enough gross profit to cover operating expenses and contribute toward a sustainable net profit.
How do I calculate markup?
Subtract your cost price from your selling price to get gross profit. Then divide the gross profit by the cost price and multiply by 100.
For example, if your cost is 75 and your selling price is 100:
Markup = (100 − 75) ÷ 75 × 100 = 33.33%
What is the difference between markup and gross margin?
Markup measures gross profit as a percentage of the cost price, while gross margin measures gross profit as a percentage of the selling price.
For example, if an item costs 75 and sells for 100:
Markup = 33.33%
Gross Margin = 25%
How do I calculate the selling price needed for a target markup?
To calculate the selling price required for a target markup, multiply your cost price by 1 plus the target markup expressed as a decimal.
Required Selling Price = Cost Price × (1 + Target Markup ÷ 100)
For example, if your cost is 75 and your target markup is 30%:
Required Selling Price = 75 × (1 + 30 ÷ 100) = 97.50
Can markup be more than 100%?
Yes. Markup can exceed 100%.
For example, if an item costs 50 and sells for 150, the gross profit is 100:
Markup = 100 ÷ 50 × 100 = 200%
Unlike gross margin, markup is not limited to less than 100%.
Can markup be negative?
Yes. Markup becomes negative when your selling price is lower than your cost price.
For example, if an item costs 100 and sells for 90:
Markup = (90 − 100) ÷ 100 × 100 = −10%
A negative markup means you are selling below cost and generating a gross loss on the sale.
Make Better Pricing Decisions
Use our free business calculators to test your numbers, compare options, and make better-informed decisions before you act.