Percentage calculator

Percentage Markup Calculator

Calculate selling price from cost and markup percentage. Use the markup formula to set retail prices and compare markup versus profit margin.

Last updated August 24, 2026

Calculate percentage markup

Enter the cost and markup percentage to find the selling price.

How this calculator works

Markup is the percentage added to the cost to arrive at the selling price. It is calculated as: Selling Price = Cost * (1 + Markup / 100). Markup is commonly used in retail, wholesale, and service pricing to ensure a desired return.

Markup is not the same as profit margin. Markup is based on cost, while profit margin is based on revenue. A 50% markup on a $40 item gives a $60 selling price, but the profit margin on that $60 sale is only 33.33%. The higher the markup, the wider the gap between markup percentage and profit margin. Compare markup with Percentage Profit to see the difference clearly.

Methodology

The calculator multiplies the cost by the markup percentage divided by 100 to find the markup amount, then adds that to the cost to find the selling price. The cost cannot be zero.

Examples

  • A $40 product with a 50% markup has a selling price of $60: 40 * 1.50 = $60. The profit margin on this sale is 33.33%.
  • A $100 item with a 25% markup has a selling price of $125: 100 * 1.25 = $125. The profit margin is 20%.
  • A $50 service with a 30% markup has a selling price of $65: 50 * 1.30 = $65. The profit margin is 23.08%.
  • A $200 cost with a 100% markup has a selling price of $400. The profit margin is 50%, which equals the markup only at 100%.

Common questions

How do I calculate markup?

Multiply the cost by the markup percentage divided by 100, then add that amount to the cost. For example, a 40% markup on $50 gives 50 * 1.40 = $70 selling price.

What is the difference between markup and margin?

Markup is based on cost. Margin is based on revenue. A 50% markup on $40 gives a $60 selling price, but the margin is only 33.33% because 20 / 60 = 33.33%.

Why does a 50% markup not equal a 50% margin?

Because markup adds to cost, while margin divides by the final selling price. A 50% markup on $40 gives $60, and the profit is $20 out of $60 revenue, which is 33.33% margin.

What markup should I use for my business?

That depends on your industry, overhead, and competition. Common retail markups range from 50% to 300%, but service businesses often use lower percentages because labor is the main cost.

Can markup be negative?

A negative markup means selling below cost, which is a loss. This happens with clearance sales, loss leaders, or distressed inventory.

How do I find the markup percentage from cost and selling price?

Subtract the cost from the selling price to find the profit, divide by the cost, and multiply by 100. For example, if cost is $80 and selling price is $120: (120 - 80) / 80 * 100 = 50% markup.