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Markup Calculator

Set a selling price from what something cost you and a markup percent, or find the markup from a cost and a price, with the matching margin.

Level: Grade 7

  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

Markup Calculator

Know the answer you need? Pick an input to work backward.

Inputs
Calculation

What the item cost you.

Percent added on top of cost.

Result

Selling price

$60.00

A 50% markup on $40.00 gives a price of $60.00, which is a 33.33% margin.

Profit per sale
$20.00
Equivalent margin
33.33%

See the step-by-step solution ↓

Step-by-step solution

  1. Find the profit to add: the cost times the markup percent

    $40.00×50%100=$20.00

  2. Add the profit to the cost to get the selling price

    $40.00+$20.00=$60.00

  3. For margin, divide the profit by the selling price, to see how much of each sale you keep

    $20.00$60.00×100=33.3333%

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Work out what to charge for something, based on what it cost you and how much you want to add on top. That amount you add is the markup. A 50% markup on a $40 item adds $20, for a selling price of $60. Many shops and trades price this way, because it starts from a number they already know: the cost.

Enter a cost and a markup percent to get the selling price. Or enter a cost and a price to see what markup that price gives you. Each answer also shows the matching margin. Margin is the same profit, measured as a share of the selling price instead. The two are easy to mix up, so seeing both helps.

Where it's used

Why this math matters outside the classroom:

  • Retail pricing. An item that costs $40 and sells for $60 has a 50% markup on cost.
  • Markup versus margin. That same $20 profit is a 33.3% margin on the $60 selling price, which is why the two percentages differ.
  • Setting a price. A shop that marks up a $25 item by 60% sets the price at $40.
  • Restaurant menus. Owners compare a dish's ingredient cost with its menu price to see the markup on each plate.

Grade level and standards: Grade 7; Common Core State Standards for Mathematics 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Choose whether you want the selling price or the markup percent.
  2. Enter the cost of the item: the wholesale price, materials or whatever you paid.
  3. Enter the markup percent, or the selling price you charge or plan to charge.
  4. Read the result, the profit on each sale and the matching margin.

What the inputs mean

Cost
The amount you paid for the item. It must be more than zero, because markup is measured against the cost.
Markup
The percent of the cost you add on as profit. 100% doubles the cost. Markups above 100% are normal for some products.
Selling price
The amount the customer pays, before any sales tax. A price below cost gives a negative markup.

Formula and method

selling price = cost × (1 + markup ÷ 100)
markup % = (price − cost) ÷ cost × 100
margin % = (price − cost) ÷ price × 100
margin = markup ÷ (100 + markup) × 100

In the formulas, the cost is what you paid, the price is what the customer pays, and price − cost is your profit. Markup and margin are both percents. The profit is the same in both; only the number you divide by changes. Markup divides the profit by the cost. Margin divides it by the price. Whenever there's a profit, the price is bigger than the cost. So the margin is always the smaller percent.

The last line switches straight from one to the other. A 50% markup is 50 ÷ 150 = 33.33% margin. A 100% markup is 100 ÷ 200 = 50% margin.

Worked example

A shop buys a jacket for $40 and adds a 50% markup.

  1. Profit: $40 × 50 ÷ 100 = $20.
  2. Selling price: $40 + $20 = $60.
  3. Matching margin: $20 ÷ $60 × 100 = 33.33%.
  4. Working back: a $60 price on a $40 cost is ($60 − $40) ÷ $40 × 100 = 50% markup.

Result: With a 50% markup, the $40 jacket sells for $60. The shop keeps 33.33% of the selling price as gross profit, the profit before running costs.

Understanding the result

Markup tells you how far above cost you're pricing. Margin tells you how much of each sale you keep. If your budget or a lender talks about margin, switch over before you compare.

A negative markup means the price is below cost. So each sale loses money, even before running costs (overheads).

Assumptions and limitations

  • Cost is the direct cost of the item. Running costs (overheads) aren't included unless you add them to the cost.
  • Prices don't include sales tax.
  • Numbers aren't rounded while the calculator works. Prices are shown to the cent, so a real price tag may differ slightly from rounding.
  • The calculator doesn't set a price for you. Competition, demand and how you position your product all matter as much as the math.
  • Discounts, shipping, card fees and returns change your real profit, and they aren't included.
  • Markup on cost is used throughout. Some industries quote a markup on the selling price, which is the same thing as margin.

Frequently asked questions

What markup gives a 50% margin?

A 100% markup. Doubling a $25 cost to $50 leaves $25 of profit, which is half of the $50 price. In general, the markup you need is margin ÷ (100 − margin) × 100.

Can markup be more than 100%?

Yes. Markup is measured against cost, so there's no upper limit. A $10 item sold for $35 has a 250% markup. Margin, on the other hand, always stays below 100%.

Should I price with markup or margin?

Either works if you stick with one. Markup is quick at the counter, because you start from cost. Margin matches how financial statements report profit. This calculator shows both, so you can move between them.

Does the markup cover my overheads?

Only if it's big enough. The profit shown is per item, before rent, wages and other running costs. Use the break-even calculator to check how many sales at this price you need to cover your fixed costs.

How this calculator is checked

Method: Standard definitions of markup on cost, (price − cost) ÷ cost, and gross margin, (price − cost) ÷ price. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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