BusCalcTools

Markup Calculator — Instant Cost-to-Price Conversion

Convert a cost price into a selling price at any markup percentage — or work backwards from a selling price to find the implied markup.

Inputs

$

What the product costs you

%

Percentage added on top of cost

Selling Price

Healthy

$60.00

Healthy margin on this markup.

Profit per unit: $20.00

Implied Margin

33.3%

Margin and markup are different numbers for the same sale

Markup Used

50.0%

How it works

Enter your cost price and the markup percentage you want to apply. The calculator returns the selling price, the profit per unit, and the implied margin. Toggle to reverse mode to start from a selling price and see what markup it represents on your cost. The calculation is the same in every region — only the currency symbol changes.

See the formula
Selling Price = Cost × (1 + Markup / 100)

Margin (%) = Markup / (100 + Markup) × 100

Example: Cost = $40 | Markup = 50%
  Selling Price = $40 × 1.50 = $60
  Gross Profit  = $20
  Margin        = (20/60) × 100 = 33.3%

Frequently Asked Questions

What is markup in business?
Markup is the amount added to the cost price of a product to determine its selling price. It is expressed as a percentage of cost. A 50% markup on a $20 item gives a selling price of $30. Markup is always higher than the equivalent margin percentage.
Is 50% markup the same as 50% margin?
No. A 50% markup means you add 50% to your cost. A 50% margin means 50% of your selling price is profit. A 50% markup produces a 33.3% margin. This is one of the most common pricing mistakes in small business.
How do I calculate markup percentage?
Markup percentage = ((Selling Price − Cost) / Cost) × 100. If your cost is $40 and your selling price is $60, the markup is ($20 / $40) × 100 = 50%.
What markup should I use for my products?
Typical retail markups range from 50% to 200%. Service businesses often use higher markups (100–300%) because labour costs include overhead. eCommerce businesses typically need 60–100% minimum markup to cover platform fees, shipping, and advertising costs.
How does markup affect profit margin?
Every markup percentage corresponds to a specific margin: 25% markup = 20% margin; 50% markup = 33.3% margin; 100% markup = 50% margin; 200% markup = 66.7% margin. Use the comparison panel in this calculator to see both figures simultaneously.

Glossary

Markup
A percentage added on top of cost to set selling price.
Margin
Profit expressed as a percentage of selling price (always lower than the equivalent markup).

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For information only. This calculator does not constitute financial, accounting, or tax advice. Consult a qualified professional before making business decisions.