What is markup?
The amount added to a product's cost to set its selling price, expressed as a percentage of the cost. A 50% markup on a 60 item adds 30, giving a 90 price.
// business-finance › Core
Markup Calculator
Find the selling price from a cost and a markup percentage, and see the resulting profit margin.
price = cost × (1 + markup%/100) ; margin% = profit / price
Frequently asked questions
How is markup different from margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. They describe the same money but against different bases, so a 50% markup is only a 33% margin.
Why does the difference trip people up?
Because confusing them under-prices your product. If you think a 50% markup gives a 50% margin, you will be short. The calculator shows both so you do not get caught out.
How do I choose a markup?
Cover your costs, your overheads and your target profit, then check the resulting margin is competitive for your market. It is a balance of what you need and what buyers will pay.
Where is markup used?
Retail and wholesale especially, where buyers set prices as a standard percentage over what they paid for stock.