Markup Calculator
Set a price from a markup, or check the markup behind a price you already use.
How to use this tool
- To set a price, enter your cost and the markup percentage you want in the left box.
- To check an existing price, enter the cost and the selling price in the right box.
- Margin is shown in both boxes so you can compare it with your target.
How it works
Markup is the percentage you add to the cost. If an item costs 80 and you add 25%, you add 20 and sell at 100.
Margin is the same profit measured against the selling price. In that example the margin is 20%, not 25%.
Selling price = cost + (cost x markup / 100)
Markup = (price - cost) / cost x 100
Margin = (price - cost) / price x 100
Example. Cost 80 with a 25% markup gives a selling price of 100. The markup amount is 20 and the margin is 20%.
Frequently asked questions
What markup should I use?
It depends on your costs and market. Work back from the profit you need after rent, wages and fees, then check that customers will pay the resulting price.
Can markup be over 100%?
Yes. Selling something at three times its cost is a 200% markup.
Why can I not reverse a zero cost?
Markup is measured against cost, so a cost of zero has no percentage. Enter a cost above zero.