Markup calculator

Cost-plus pricing in one step, with the margin it gives you.

Formula Finance

Selling price

Profit: US$30.00
Gross margin: ≈ 33.3333%

How it works

Markup is the amount added to the cost, as a percentage of the cost. Multiply the cost by (1 + markup) to get the price.

Margin looks at the same profit as a share of the price, so it is always lower than the markup. A 100% markup doubles the cost and gives a 50% margin.

Formula

Price = cost × (1 + markup ÷ 100)
Markup = (price − cost) ÷ cost × 100
Margin = (price − cost) ÷ price × 100

Worked example

A cost of 60 with a 50% markup gives a price of 60 × 1.5 = 90, a profit of 30 and a margin of 30 ÷ 90 ≈ 33.33%.

Questions people ask

Can a markup be more than 100%?

Yes. A 200% markup triples the cost. A margin, by contrast, can never reach 100%.

Should tax be in the cost?

Usually not. Work out the price before VAT or sales tax, then add the tax with the VAT or sales tax calculator.