Markup Calculator
Determine profitable selling prices and understand your margins.
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What is Markup?
Markup is the difference between the cost of a good or service and its selling price. It is expressed as a percentage over the cost. For example, a 50% markup means you are selling the item for 50% more than what you paid for it.
Formula Used
Markup % = ((Selling Price - Cost) / Cost) * 100
Selling Price = Cost + (Cost * Markup / 100)
Selling Price = Cost + (Cost * Markup / 100)
Markup vs Margin
Markup is based on cost (Profit/Cost), while Margin is based on revenue (Profit/Sale Price).
Example: If Cost = 100 and Sale = 150, Profit is 50.
Markup = 50/100 = 50%. Margin = 50/150 = 33.3%.
Frequently Asked Questions
Is a higher markup always better?
Not necessarily. A very high markup might make your product too expensive for customers, reducing sales volume. The ideal markup depends on your industry standards.