Quick answer
Selling price = cost × (1 + markup), and margin = markup ÷ (1 + markup). A $80 cost with a 25% markup sells at $100.00, a $20 profit and a 20% margin.
Enter the cost and the markup percentage. The calculator returns the selling price, profit and margin.
Related tools: Break-Even Calculator: Units and revenue needed to cover fixed and variable costs. Margin Calculator: Profit, gross margin and markup from cost and revenue. Contribution Margin Calculator: Per-unit contribution and contribution margin ratio.
How to use the Markup Calculator
- Enter cost ($) (0 or more).
- Enter markup (%) (0 or more).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Cost | A number, in $ | ≥ 0 |
| Markup | A number, in % | ≥ 0 |
Formula and method
Formula
price = cost × (1 + markup); margin = markup ÷ (1 + markup)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Markup applied to cost.
Worked examples
This example is verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Cost = 80; Markup = 25.
| Result | Value |
|---|---|
| Selling price | $100.00 |
| Profit | $20.00 |
| Margin | 20% |
The first line is the headline result (selling price). Below it the markup Calculator lists profit and margin, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Markup is not margin
Markup is profit as a share of cost (20 ÷ 80 = 25%); margin is profit as a share of price (20 ÷ 100 = 20%). A 50% markup is only a 33.3% margin. Confusing the two is a common pricing mistake.
Going the other way
To reach a target margin m, markup must be m ÷ (1 − m): a 40% margin needs a 66.7% markup. A 0% markup sells at cost.
How the result changes with cost
Holding every other input at the first worked example, this table changes only cost. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Cost | Selling price | Profit | Margin |
|---|---|---|---|
| 40 | $50.00 | $10.00 | 20% |
| 80 | $100.00 | $20.00 | 20% |
| 160 | $200.00 | $40.00 | 20% |
| 320 | $400.00 | $80.00 | 20% |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Markup: entering "-1" shows "Markup must be at least 0." beside that field and no result.
Choosing between the Markup Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Break-Even Calculator](/business/break-even/) | fixed costs, price per unit and variable cost per unit | Break-even units |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
| [Contribution Margin Calculator](/business/contribution-margin-calculator/) | selling price per unit and variable cost per unit | Contribution per unit |
| [ROI Calculator](/business/roi-calculator/) | amount invested and final value | ROI |
| [CPM Calculator](/business/cpm-calculator/) | ad spend and impressions | CPM |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Markup 0% sells at cost
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for markup to confirm this.
Frequently asked questions
What markup gives a 50% margin?
A 100% markup, meaning the price is double the cost.
Which is higher, markup or margin?
Markup is always the larger percentage for the same profit.
Does it include overheads?
Only if you include them in the cost.
What does the Markup Calculator calculate?
Selling price from cost and markup percentage. It returns Selling price, Profit and Margin.
What formula does the Markup Calculator use?
price = cost × (1 + markup); margin = markup ÷ (1 + markup). Markup applied to cost.
What do I need to enter in the markup Calculator?
You enter Cost ($) and Markup (%).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Markup 0% sells at cost.
What is an example of a markup result?
With cost 80 and markup 25, the selling price is $100.00.
Related calculators
- Break-Even Calculator — Units and revenue needed to cover fixed and variable costs.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- Contribution Margin Calculator — Per-unit contribution and contribution margin ratio.
- ROI Calculator — Return on investment, with optional annualized return.
- CPM Calculator — Cost per thousand impressions.
- ROAS Calculator — Return on ad spend.
- CTR Calculator — Click-through rate.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.