Markup Calculator
Enter your unit cost and the markup you want to apply to find the selling price, profit per unit, and resulting margin instantly. It is the fastest way to price a product so every sale covers its cost and returns the profit you planned.
How the markup calculator works
Markup is the amount you add to what a product costs you in order to arrive at a selling price. It is the everyday pricing tool for retailers, wholesalers, contractors, and anyone who buys or builds something and resells it. This calculator takes your unit cost and the markup percentage you want to apply, then returns the selling price along with the profit and margin that markup produces.
Profit per unit = Selling price − Cost
Margin % = (Profit ÷ Selling price) × 100
Suppose an item costs you $50 and you apply a 40% markup. Multiply $50 by 1.40 and the selling price is $70. Your profit per unit is $20, and because that $20 is measured against the $70 selling price, your margin works out to about 28.57%. Notice how the markup percentage (40%) and the margin percentage (28.57%) are different numbers describing the same sale — a distinction that trips up many owners.
Markup vs. margin: don't confuse them
Markup is calculated against cost; margin is calculated against the selling price. Since the selling price is always larger than the cost, the margin will always be smaller than the markup. If you want a specific margin, you generally need a higher markup to reach it. Pricing by markup but reporting profitability by margin is fine — as long as you remember they are two views of the same transaction and never assume the percentages are equal.
Choosing the right markup
- Cover your overhead — markup has to do more than replace cost; it must also fund rent, payroll, and every expense outside of goods.
- Watch the competition — markups that push your price well above rivals can cost you sales unless you offer clear added value.
- Account for shrinkage and returns — damaged goods, discounts, and returns eat into planned profit, so build a cushion into your markup.
- Vary by product — slow-moving or specialty items often justify a higher markup than fast-selling staples.
Related pricing tips
- Cross-check the resulting profit margin to be sure your price is healthy.
- Confirm your break-even point at the new price before committing.
- Revisit markups whenever supplier costs change so your margins hold steady.
Frequently asked questions
How do I calculate a selling price from markup?
Multiply your unit cost by one plus the markup as a decimal. A $50 item with a 40% markup sells for 50 x 1.40 = $70. The $20 difference is your profit per unit.
Is markup the same as margin?
No. Markup is profit measured against cost, while margin is profit measured against the selling price. A 40% markup produces a lower margin of about 28.57%, because the selling price is larger than the cost.
How much should I mark up my products?
It depends on your industry, competition, and overhead. Many retailers use markups from 50% to over 100% to cover operating costs and still profit. Set markup high enough that your resulting margin covers all expenses with room to spare.
Can markup be over 100%?
Yes. Because markup is measured against cost, it has no upper limit. A 200% markup means the selling price is three times the cost. Margin, by contrast, can never exceed 100%.
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This calculator is for educational and informational purposes only and does not constitute financial, accounting, or tax advice. Estimates are based on the values you enter and standard markup math. Consult a qualified professional before making pricing or business decisions.