Business
Calculate selling price and markup from cost and profit.
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Markup calculator guide
Markup is the percentage added to cost to set a selling price. This calculator takes a cost and markup rate, turns the rate into a multiplier, and returns the recommended selling price along with the gross profit. It is useful when pricing a product, service, materials, or a resale item from a known cost. Markup is based on cost, while margin is based on selling price, so the same sale has different markup and margin percentages. A 40% markup does not create a 40% margin. Before using the result, decide what belongs in cost: purchase price alone, direct labor, materials, shipping, payment fees, or a share of overhead. The calculator is a clean starting point, not a complete pricing strategy. You may still need to check market prices, minimum order sizes, sales tax, discounts, returns, and the amount of profit required to cover fixed expenses, none of which are included in the displayed price.
Selling price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Implied margin = gross profit ÷ selling price × 100.
Worked example with the defaults: with a cost of $50 and a 40% markup, the multiplier is 1 + 40 ÷ 100 = 1.40, so the recommended selling price is $50 × 1.40 = $70.00, the figure the calculator displays. Gross profit is $70 − $50 = $20.00, shown on its own row next to the $50.00 cost. The implied margin is $20 ÷ $70 × 100 = 28.6%, which is lower than the 40% markup because margin uses the selling price as its denominator. If you needed a 40% margin instead, the price would have to be $50 ÷ 0.60 = $83.33.
Cost and selling price must use the same currency and the same unit, such as per item, per job, or per hour. Enter 40 for a 40% markup, not 0.40. If cost includes a monthly overhead allocation, make sure the sales price uses the same period or unit basis. The displayed price is before sales tax, card fees, and shipping.
The result is a planning figure that depends entirely on the assumptions you entered. Fees, taxes, payment timing, and rate changes are not captured unless you built them into the inputs, and small errors in a rate compound quickly over time. Verify the rates and terms against your own agreements or your accountant before making a commitment. On this page the figure rests entirely on cost and markup, so start there if the markup calculator returns something you did not expect.
Do not add the markup percentage to an already rounded price, and do not apply it after sales tax; calculate from the full pre-tax cost, then round the selling price once. Avoid using markup as a substitute for margin: a supplier asking for “40 points” of margin wants $83.33 on a $50 cost, not $70. Do not forget that a 40% markup on cost alone may leave nothing after card fees of 2–3%, shipping, returns, and overhead, so check the gross profit row against the fixed costs each sale must cover.
Use the result for planning, then confirm taxes, fees, contract terms, and other business-specific assumptions. This is not accounting, tax, or investment advice.
How it works
Calculate selling price and markup from cost and profit. This tool explains the calculation so you can adjust the assumptions to match your situation.
Worked example
With Cost = 50 $ · Markup = 40 % → $70.00 (recommended selling price). Change an input above and this example updates with your numbers.
Common questions
Multiply cost by 1 plus the markup rate as a decimal. For $50 cost and 40% markup: $50 × 1.40 = $70. The extra $20 is your gross profit before tax, fees, and overhead.
Markup is profit divided by cost. Margin is profit divided by selling price. A 40% markup produces a 28.6% margin when cost is $50 and price is $70, and the gap widens as the markup grows.
A 40% markup adds 0.40 × $50 = $20 to the $50 cost, giving a selling price of $70 and a gross profit of $20. Sales tax, payment fees, and shipping are added or deducted separately.
Only if overhead is included in the cost input. If you mark up product cost alone, you still need to check whether the resulting profit covers labor, rent, card fees, returns, and other expenses; many retailers use 50–100% markups for that reason.
If the desired margin is m as a decimal, markup = m ÷ (1 − m). For a 30% margin, the equivalent markup is 0.30 ÷ 0.70 = 42.9%; for a 40% margin it is 0.40 ÷ 0.60 = 66.7%.