Markup Calculator
Markup is the amount you add to the cost of an item to arrive at its selling price, expressed as a percentage of that cost. This calculator turns a cost and a markup percentage into a selling price, then shows you the profit per unit and the profit margin that markup actually produces. It works in any currency.
- Cost
- Profit
- Cost
- $100.00
- Profit
- $40.00
- Selling price
- $140.00
- Profit margin
- 28.57%
A 40% markup on cost works out to a 28.6% profit margin on the selling price — the margin is always the smaller of the two numbers because it is measured against a bigger base.
How it works
Retailers and tradespeople usually think in markup because they start from a known cost — the price they paid a supplier — and add a percentage on top to cover overheads and profit. If an item costs you 100 and you apply a 40% markup, you add 40, so it sells for 140.
The number people most often get wrong is the difference between markup and margin. Markup divides the profit by the cost; margin divides the same profit by the selling price. Because the selling price is always larger than the cost, the margin is always a smaller percentage than the markup. A 40% markup is only a 28.6% margin, and a 100% markup (doubling the price) is a 50% margin. Confusing the two is one of the most common ways small businesses quietly under-price.
Use the currency switcher at the top to view the result in your own currency — the percentages stay the same wherever you trade.
Selling price = Cost × (1 + markup%/100). Profit = Selling price − Cost. Profit margin = Profit ÷ Selling price × 100. Markup is measured against cost; margin is measured against the selling price.
Worked example
Suppose an item costs you 100 and you want a 40% markup. The profit is 100 × 0.40 = 40, so the selling price is 140. That 40 of profit on a 140 sale is a profit margin of about 28.6%. So a 40% markup and a 28.6% margin are two descriptions of exactly the same deal — they only sound different because they are measured against different bases.
Things to watch out for
A markup of 0% means you sell at cost and make no profit. To hit a target margin rather than a target markup, convert first: required markup = margin ÷ (100 − margin) × 100, so a 50% margin needs a 100% markup. Remember the cost here is your unit cost — if you have not loaded in shipping, packaging, payment fees, or returns, your real margin will be thinner than the figure shown.
Frequently asked questions
What is the difference between markup and margin?+
Markup is your profit as a percentage of cost; margin is the same profit as a percentage of the selling price. Markup is always the larger number. A 40% markup equals a 28.6% margin.
How do I set a price for a target margin?+
Convert the margin to a markup first: markup = margin ÷ (100 − margin) × 100. For a 50% margin you need a 100% markup, which means doubling the cost.
Does the cost include all my expenses?+
Only the cost you enter. For an accurate margin, fold in shipping, packaging, payment processing, and an allowance for returns before you apply the markup.
Can I use this for any currency?+
Yes — markup and margin are percentages, so the math is identical everywhere. Use the currency switcher to display the price in your own currency.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22