Markup Calculator
Calculate markup percentage from item cost and selling price. Understand the difference between markup and profit margin free in your browser.
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How to use Markup Calculator
- 1
Input your item acquisition cost and planned selling price.
- 2
Click Calculate to determine the exact markup percentage added over cost.
- 3
Review the difference between markup on cost and gross margin on revenue.
Capabilities
- Computes price markup percentage directly from cost and selling price
- Calculates resulting gross profit margin and dollar profit
- Free in-browser calculation with zero network data transmission
How to Calculate Price Markup Percentage & Retail Pricing
Markup is the percentage added to the wholesale cost of a product to determine its final retail selling price. It ensures that every product sold covers its manufacturing or purchasing expense while generating sufficient gross profit for business operations.
Formula: Markup % = [(Selling Price - Cost) / Cost] * 100. Measures what percentage increase was added to the original purchase cost.
Formula: Selling Price = Cost * (1 + Markup / 100). Easily converts wholesale unit inventory invoices into catalog retail list prices.
Worked Markup Example: Cost $80 with 25% Markup
Suppose a boutique purchases inventory for $80 per unit and applies a 25% markup:
Markup Added ($): $80 * 0.25 = $20.00
Selling Price: $80 + $20 = $100.00
Resulting Profit Margin: ($20 / $100) * 100 = 20.00%
Takeaway: A 25% markup on an $80 cost delivers a 20% gross profit margin on a $100 selling price.
To view gross profit as a proportion of total customer sales revenue, use Profit Margin Calculator.
This tool operates in a sandbox directly inside your web browser. All parsing, processing, and downloads are rendered locally. Your file size, metadata, and contents never cross the network. It works completely offline.
Frequently Asked Questions
How do you calculate markup percentage from cost and price?
Markup percentage is calculated as: Markup (%) = [(Selling Price - Cost) / Cost] * 100. For instance, if an item costs $80 and you sell it for $100, the markup is ($20 / $80) * 100 = 25%.
How is markup different from profit margin?
Markup expresses profit relative to your wholesale cost (Profit / Cost), whereas profit margin expresses profit relative to the customer retail price (Profit / Selling Price). If an item costs $100 and sells for $150, the markup is 50%, while the margin is 33.33%.
Can markup percentage exceed 100%?
Yes. Markup can reach any positive percentage without limit. A 100% markup doubles the cost (cost $50, selling price $100), while a 200% markup triples it (cost $50, selling price $150).
Why do retailers use markup instead of margin to price goods?
Wholesale merchants and retailers frequently know their supplier purchase costs first. Applying a standard markup percentage (such as 40% or 50% keystone pricing) makes it straightforward to quickly set retail catalog prices.
How do I convert a target profit margin into a markup percentage?
Use the conversion formula: Markup (%) = [Margin % / (100 - Margin %)] * 100. For example, to achieve a 20% margin, you need a markup of [20 / (100 - 20)] * 100 = 25%.