Markup Calculator
Calculate markup percentage, selling price, and profit margin for your business pricing strategy. Free, fast, and accurate calculations.
Calculation Results
Cost Price
Selling Price
Profit Amount
Markup Percentage
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How to Use the Markup Calculator
- Enter the Cost Price of your product or service
- Select the Calculation Type from the dropdown menu
- Enter the corresponding value (markup percentage, selling price, or profit amount)
- Click the Calculate button to get your results
- View the complete breakdown of all pricing components
- Use the Reset button to clear all fields and start over
Markup Formula and Calculations
Basic Markup Formulas:
- Selling Price = Cost Price + (Cost Price × Markup Percentage / 100)
- Markup Percentage = (Profit Amount / Cost Price) × 100
- Profit Amount = Selling Price - Cost Price
- Profit Margin = (Profit Amount / Selling Price) × 100
Understanding Markup vs. Margin
Markup
Markup is the amount added to cost price to determine selling price. It's calculated as a percentage of the cost price.
Margin
Margin is the percentage of selling price that represents profit. It's calculated as a percentage of the selling price.
Business Applications and Use Cases
Retail Businesses
- Product pricing strategies
- Inventory valuation
- Competitive pricing analysis
- Seasonal pricing adjustments
Service Providers
- Service package pricing
- Hourly rate calculations
- Project cost estimates
- Profit margin optimization
Manufacturing
- Cost-plus pricing models
- Wholesale pricing
- Break-even analysis
- Volume discount strategies
E-commerce
- Dynamic pricing strategies
- Marketplace pricing
- Shipping cost calculations
- Bundle pricing optimization
Markup Calculation Examples
Example 1: 50% Markup
Cost Price: $100
Markup: 50%
Calculation: $100 + ($100 × 50/100) = $100 + $50 = $150
Selling Price: $150
Profit: $50
Example 2: Find Markup Percentage
Cost Price: $80
Selling Price: $120
Profit: $120 - $80 = $40
Markup Percentage: ($40 ÷ $80) × 100 = 50%
Frequently Asked Questions
What's the difference between markup and profit margin?
Markup is calculated based on cost price, while profit margin is calculated based on selling price. A 50% markup equals approximately 33% profit margin.
What's a good markup percentage?
This varies by industry. Retail typically uses 50-100% markup, while restaurants often use 200-400% markup on food items. Research your industry standards.
How do I calculate competitive pricing?
Research competitor prices, understand your value proposition, and ensure your markup covers all costs while remaining competitive in the market.
Should I use fixed or variable markup?
Fixed markup is simpler but variable markup allows for strategic pricing based on product category, seasonality, and market conditions.
About This Markup Calculator
Our free online markup calculator is designed to help businesses, entrepreneurs, and individuals quickly calculate markup percentages, selling prices, and profit margins. Whether you're setting prices for retail products, services, or digital goods, this tool provides accurate calculations to support your pricing strategy.
The calculator is mobile-friendly, requires no downloads or installations, and provides instant results. All calculations are performed locally in your browser, ensuring your business data remains private and secure.