Markup Calculator
Find markup amount, selling price, and equivalent gross margin.
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Presets:
Target Selling Price
$70.00
Selling Price: $70.00 (Markup Amount: $20.00, Equivalent Margin: 28.57%)
Markup Amount (Profit)$20.00
Equivalent Margin28.57%
Cost of Goods$50.00
Markup vs. Profit Margin Comparison:
At a selling price of $70.00 on a cost of $50.00, your markup is 40% (profit ÷ cost), while your profit margin is 28.57% (profit ÷ revenue).
How It Works
The Markup Calculator determines selling prices and gross profit by adding a markup percentage to your cost of goods sold (COGS).
It also computes the equivalent gross profit margin so you can verify how cost markups translate into top-line profitability.
Formula & Calculation
Selling Price from Markup Formula
Price = Cost × (1 + (Markup % / 100))
Cost=Wholesale acquisition or manufacturing cost
Markup %=Percentage added on top of cost
Price=Final retail selling price
Markup Percentage from Price & Cost
Markup % = ((Price − Cost) / Cost) × 100
Price − Cost=Gross profit markup in dollars
Cost=Baseline cost of goods sold
Step-by-Step Example
Example 1: Applying 50% Markup to a $40 Cost Item
Find selling price and profit margin with 50% markup:
Step 1: Calculate dollar markup amount:
$40.00 × 0.50→ $20.00 profit markupStep 2: Add markup to wholesale cost:
$40.00 + $20.00→ $60.00 retail priceStep 3: Convert to gross margin percentage:
($20.00 / $60.00) × 100→ 33.33% marginA 50% markup creates a $60 selling price with a 33.33% gross profit margin.
Assumptions & Edge Cases
- Cost Must Be Positive: Markup is expressed as a ratio of profit over cost. If cost is zero, markup percentage is undefined.
Frequently Asked Questions
Can markup exceed 100%?
Yes. Unlike profit margin (which cannot exceed 100% unless costs are negative), markup can be 100% (doubling the cost), 200% (tripling the cost), or higher.