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Finance Calc Kit
Business

Markup Calculator

Calculate markup percentage, selling price, or cost with visual breakdown charts, step-by-step calculations, and comprehensive profit analysis for smart pricing decisions.

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Markup

50.00%

Profit as a percentage of cost

Cost

$100.00

Selling price

$150.00

Gross profit

$50.00

Selling price minus cost

Gross margin

33.33%

Profit as a percentage of selling price

Selling price breakdown

Selling price$150.00
  • Cost$100.0066.7%
  • Profit$50.0033.3%

How we calculated this

Open to see each step from your inputs to the result.

  1. 1. Calculate gross profit

    Gross Profit=Selling Price−Cost\text{Gross Profit} = \text{Selling Price} - \text{Cost}

    Gross Profit = $150.00 - $100.00 = $50.00

  2. 2. Calculate markup percentage

    Markup %=(Gross ProfitCost)×100\text{Markup \%} = \left(\frac{\text{Gross Profit}}{\text{Cost}}\right) \times 100

    Markup = ($50.00 / $100.00) * 100 = 50.00%

  3. 3. Calculate gross margin

    Gross Margin %=(Gross ProfitSelling Price)×100\text{Gross Margin \%} = \left(\frac{\text{Gross Profit}}{\text{Selling Price}}\right) \times 100

    Gross Margin = ($50.00 / $150.00) * 100 = 33.33%

Report tool

What is markup percentage?

Markup percentage is the amount added to the cost of a product or service to reach its selling price, expressed as a percentage of cost. If you buy an item for $100 and sell it for $150, your gross profit is $50 and your markup is 50% because the profit equals half of your cost. All calculations run in your browser.

Markup is often confused with profit margin, which measures profit as a share of selling price instead of cost. To compare both metrics side by side, use the margin calculator. For minimum sales volume needed to cover fixed costs, try the break-even calculator. To see how each unit contributes toward overhead after variable costs, use the contribution margin calculator. For unit-level revenue, gross profit, net profit, and margin from cost and selling price, use the profit calculator.

Markup formulas

The core markup formula calculates profit relative to cost:

Markup %=(Selling Price−CostCost)×100\text{Markup \%} = \left(\frac{\text{Selling Price} - \text{Cost}}{\text{Cost}}\right) \times 100

Rearrange the formula to solve for selling price or cost:

Selling Price=Cost×(1+Markup100)\text{Selling Price} = \text{Cost} \times \left(1 + \frac{\text{Markup}}{100}\right)
Cost=Selling Price1+Markup100\text{Cost} = \frac{\text{Selling Price}}{1 + \frac{\text{Markup}}{100}}

Markup vs gross margin

Gross margin divides profit by selling price, so the same transaction always shows a lower margin percentage than markup percentage:

Gross Margin %=(Gross ProfitSelling Price)×100\text{Gross Margin \%} = \left(\frac{\text{Gross Profit}}{\text{Selling Price}}\right) \times 100

Worked example

A retailer purchases inventory for $100 and lists it at $150.

  • Gross profit = $150 - $100 = $50
  • Markup = ($50 / $100) * 100 = 50%
  • Gross margin = ($50 / $150) * 100 = 33.33%

The selling price splits into 66.7% cost recovery and 33.3% gross profit. A 50% markup does not mean a 50% margin.

Markup and margin reference table

Markup %Gross margin %Example ($100 cost)
25%20%Sell for $125, profit $25
50%33.3%Sell for $150, profit $50
100%50%Sell for $200, profit $100
200%66.7%Sell for $300, profit $200

Frequently asked questions

What is markup percentage?
Markup percentage is profit divided by cost, multiplied by 100. If a product costs $100 and you sell it for $150, the $50 profit is a 50% markup because it equals 50% of the $100 cost.
How do you calculate selling price from markup?
Multiply cost by (1 + markup / 100). A $100 cost with 50% markup gives a selling price of $100 * 1.5 = $150.
What is the difference between markup and gross margin?
Markup uses cost as the denominator. Gross margin uses selling price. A 50% markup on $100 cost ($150 selling price) produces a 33.33% gross margin, not 50%.
What is a typical markup percentage by industry?
Retail often uses 50% to 100% markup (keystone pricing doubles cost). Restaurants may apply 200% to 300% on food. Grocery operates on 15% to 25%. Luxury goods can range from 100% to 400%.
Can markup be negative?
Yes. Selling below cost produces a negative markup. The calculator flags zero cost and invalid inputs to prevent division errors.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.