A precise, easy to use tool to compute selling price, gross profit, and markup from any two inputs (cost, price, markup %). Instantly solve for the missing value and validate profitability for retail, e-commerce, services, and procurement.
Introduction
The calculator supports three modes: Cost + Markup %, Cost + Price, and Price + Markup %. It treats markup % as profit ÷ cost × 100 and shows clear outputs for price and profit so you can price fast and stay profitable.
How to Use the Markup Calculator
A step-by-step guide to help you use the Markup Calculator effectively.
Choose calculation mode:
- Cost + Markup % – get selling price and profit from your cost.
- Cost + Price – see markup % and profit for an existing price. - Price + Markup % – back-calculate the maximum cost that meets a target markup.
Enter the inputs:
- Cost: your per-unit cost (purchase/production/landed).
- Selling Price: the per-unit price you plan to charge. - Markup %: the percentage applied on cost (profit ÷ cost × 100). Enable Show decimals if you need precise cents and percentages.
Review your results:
- Selling Price: cost × (1 + markup% ÷ 100) (Cost + Markup% mode)
- Gross Profit: price − cost - Markup: (price − cost) ÷ cost × 100 The results card displays the computed values clearly—ideal for quick quotes and price checks.
Frequently Asked Questions
What is markup?
Markup is the extra you add to cost to get the selling price. In dollars: markup = price − cost. As a percent of cost: markup % = (price − cost) ÷ cost × 100.
What’s the difference between markup and margin?
Markup is profit as a % of cost. Margin (gross profit margin) is profit as a % of price. Formulas:
- markup% = (price − cost) ÷ cost × 100
- margin% = (price − cost) ÷ price × 100
Same numbers, different denominators—don’t mix them.
How do I get selling price from cost and markup %?
price = cost × (1 + markup %/100). Example: cost 100, markup 20% → price 120.
I know price and cost. How do I get markup % and gross profit?
gross profit = price − cost. markup % = (price − cost) ÷ cost × 100. Example: price 150, cost 120 → profit 30, markup 25%.
What’s a “good” markup?
It depends on industry, product risk, and overhead. Low-competition/retail niches may run 40–100%+ markup; commodity/ecommerce can be 10–30%. Use your costs, overhead, and target margin to set a price—not generic rules of thumb.
Does the calculator include tax, shipping, or discounts?
By default it treats them as excluded. If you collect sales tax/VAT on top, it does not change margin. If your price is tax-inclusive, remove the tax first to evaluate margin. Shipping, payment fees, returns, and overhead reduce true profit—add them to cost for a realistic margin.
Is markup based on unit cost or total order?
Either. The math is linear. Unit profit × quantity = total profit. Just keep the same basis (per-unit vs total) across all inputs.
Common mistakes to avoid?
(1) Confusing margin with markup. (2) Applying a “30% margin” but calculating 30% markup. (3) Forgetting variable costs (shipping/fees). (4) Using tax-inclusive price to compute margin. (5) Setting markup from competitors without checking your own break-even.
How do I use markup with a target margin?
If you want a target margin %, convert it to markup % first: markup % = margin % ÷ (1 − margin %) × 100, then price = cost × (1 + markup %/100).
How should I interpret the output?
Read together: price, gross profit, markup %, and optionally margin %. If profit looks fine but margin is thin, you’re vulnerable to small cost increases. If markup is high but profit dollars are small, consider volume/elasticity.
How the Markup Calculator works
- Modes supported
1. Cost + Markup % → Price & Profit
price = cost × (1 + markup%/100)
profit = price − cost
margin % = profit ÷ price × 100
Cost + Price → Markup %, Margin, Profit
profit = price − cost
markup % = profit ÷ cost × 100
margin % = profit ÷ price × 100
Price + Markup % → Cost, Margin, Profit
cost = price ÷ (1 + markup%/100)
profit = price − cost
margin % = profit ÷ price × 100
- Key relationships
- markup $ = price − cost
markup % = (price − cost) ÷ cost × 100
margin % = (price − cost) ÷ price × 100
margin % = markup % ÷ (100 + markup %) × 100
markup % = margin % ÷ (100 − margin %) × 100
- Assumptions
- Inputs are pre-tax and pre-discount unless you explicitly add those into cost or subtract from price.
Overhead can be folded into cost for truer margins.
Rounding to 2 decimals for currency; percentages to 1–2 decimals.
- Example (matches screenshot logic)
- cost = 100, markup % = 20 → price = 120, profit = 20, margin % ≈ 16.67, markup % = 20.
- Edge cases
- cost ≤ 0: markup % is not defined; the tool guards against divide-by-zero.
- negative profit (price < cost): markup % becomes negative; margin % negative—flag as loss.
- Usage tips
- If you price to a target margin, convert to markup first to avoid the classic margin/markup mix-up.
Re-run with fees (payment, shipping, returns) added to cost to see all-in margin.
Pair with a break-even or elasticity check before final pricing.
Sources & Methodology