Markup Calculator
Calculate markup amount, markup percentage, and selling price.
Markup Results
What Is Markup?
Markup is the amount added to the cost of a product or service to determine its selling price. It is commonly used by retailers, wholesalers, businesses, and sellers when setting prices.
Markup Formula
Markup Example
Suppose an item costs $100 and you apply a 25% markup.
The resulting selling price is $125 and the markup amount is $25.
How to Calculate Markup Percentage
If you already know the cost price and selling price, markup percentage can be calculated by comparing the profit or markup amount with the original cost.
For example, if an item costs $80 and sells for $100, the markup amount is $20. The markup percentage is therefore 25%.
Markup vs. Profit Margin
Markup and profit margin are related but they are not the same calculation. Markup is calculated using the cost price as its base, while profit margin is calculated using the selling price.
For example, a product costing $100 and selling for $125 has a 25% markup but a 20% profit margin.
Frequently Asked Questions
How do I calculate a markup?
Multiply the cost price by the markup percentage divided by 100. Then add the markup amount to the cost price to determine the selling price.
What is a 20% markup on $50?
A 20% markup on $50 is $10, making the selling price $60.
Is markup the same as profit margin?
No. Markup uses the cost price as its base, while profit margin uses the selling price as its base.
Can markup be more than 100%?
Yes. A markup can be greater than 100%. For example, a 150% markup on a $100 cost produces a $150 markup and a $250 selling price.