Markup Calculator
Cost-plus pricing in one step. Enter what an item costs you and the markup you add to get the selling price, or enter both prices to see the markup. Every result also shows the profit per unit and the equivalent margin, because the two are easily confused, and can add sales tax for the shelf price.
- Runs in your browser
- No sign-up
- Free to use
How to use Markup Calculator
- Choose whether to calculate the price or the markup.
- Enter the cost per unit.
- Enter the markup percentage, or the selling price.
- Add tax if you need the price including it.
Markup Calculator features
Cost-plus pricing
Price = cost × (1 + markup).
Reverse mode
Markup from a cost and a price.
Margin alongside
Shows the margin that the markup produces.
Tax
Adds sales tax or VAT for a final price.
Any currency
Formatted in your currency.
Shows the working
The formula appears under the result.
When to use Markup Calculator
- Setting retail prices from wholesale costs.
- Quoting a job with a standard markup on materials.
- Checking a supplier’s recommended retail price.
- Converting between markup and margin for reports.
Markup Calculator FAQ
What is markup?
The amount added to the cost to reach the selling price, as a percentage of the cost. A 50% markup on a cost of 40 gives a price of 60.
What is the difference between markup and margin?
Markup is profit divided by cost; margin is profit divided by price. A 50% markup equals a 33.33% margin.
What is a keystone markup?
A 100% markup, doubling the cost. It is a traditional retail benchmark and gives a 50% margin.
Can markup be more than 100%?
Yes. Markup has no upper limit; a price of three times the cost is a 200% markup.
Should the cost include shipping?
Include every cost of getting the item ready to sell, such as purchase price, freight and duties, so the markup covers them.
Is the result a recommended price?
It is arithmetic. The right price also depends on demand, competitors and your positioning.
Cost-plus pricing and its limits
Markup pricing is the simplest pricing method: take the cost, add a percentage, and that is the price. It is transparent, easy to apply across thousands of items, and guarantees that each sale covers its direct cost. That is why retailers, wholesalers and tradespeople have used it for centuries.
The percentage itself carries the strategy. A markup must cover overheads, losses, discounts and profit. Industries settle on typical markups: high where stock moves slowly or spoils, lower where volume is high. Applying a consistent markup keeps prices coherent across a range.
Because markup is calculated on cost and margin on price, they diverge as they grow. A 25% markup is a 20% margin; a 100% markup is a 50% margin; a 300% markup is a 75% margin. Reports often use margin, so convert before comparing figures from different sources.
Cost-plus ignores what customers are willing to pay. It can leave money on the table for products customers value highly, and price others out of the market. Use markup to set a floor, and look at competitors and demand to decide where above that floor the price should sit.