Markup is how most businesses set a price: start with what an item cost you, then add a percentage on top. It is fast, intuitive, and works directly from the number you know best, the cost. The Markup Calculator turns a cost and a markup percentage into a selling price instantly, so you can price a catalog consistently without spreadsheets.
How markup works
A markup is a percentage of the cost that you add to reach the price. To apply it, multiply the cost by one plus the markup expressed as a decimal. A 50 percent markup means multiplying the cost by 1.5; a 25 percent markup means multiplying by 1.25.
price = cost * (1 + markup / 100)
Because markup is based on cost, the same percentage adds a different absolute amount to cheap and expensive items, which keeps your profit proportional to what you spend. This is why retailers and wholesalers price from markup: it scales cleanly across an entire range of products.
Markup is not margin
It is easy to confuse markup with profit margin, but they use different denominators. Markup is profit as a percentage of cost; margin is profit as a percentage of price. A 50 percent markup is not a 50 percent margin. In the example below, a 50 percent markup produces only a 33.3 percent margin, so always be clear about which one a target refers to.
How to use the Markup Calculator
- Enter the cost of the item.
- Enter the markup percentage you want to apply.
- Read the resulting selling price.
- Try different markups to find a price that fits your market.
A worked example
Take a cost of 40 and a markup of 50 percent. The price is 40 * (1 + 50 / 100) = 40 * 1.5 = 60. The profit is 20. Check the margin: 20 / 60 = 33.3 percent, lower than the 50 percent markup, exactly as expected. Raising the markup to 100 percent would double the cost to a price of 80.
Pricing with confidence
Markup pricing is quick and dependable when you know your costs. Use the calculator to standardize prices across products and to see the margin a given markup really delivers. It runs privately in your browser, so your cost data stays with you.
