Business

Markup Calculator

Calculate your selling price, profit, and profit margin from cost and markup percentage.

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Selling Price

$150.00USD

Cost$100.00
Profit$50.00
Profit Margin33.3%

What is the Markup Calculator?

A markup calculator is a business tool that computes the selling price of a product or service by adding a markup percentage to the cost price. Markup is the amount you add above your cost to cover expenses and profit; it's different from margin, which is the profit as a percentage of the selling price.

How it works

Enter your cost price (what you paid for the product or service) and your desired markup percentage (the profit margin you want to achieve). The calculator multiplies the cost by (1 + markup/100) to give you the selling price. You'll see the final price you should charge and the profit you make per unit.

Selling Price = Cost Price × (1 + Markup % / 100)

Cost Price is what you pay to acquire the product; Markup % is the percentage profit above cost you want to add (e.g., 30% means you add £30 per £100 of cost); the result is the price you should charge customers.

Examples

InputResultNotes
Cost: £50, Markup: 25%Selling Price: £62.50, Profit: £12.50A 25% markup adds £12.50 per £50 cost—quick math for retail items
Cost: £200, Markup: 50%Selling Price: £300, Profit: £10050% markup doubles profit on the original cost—common for restaurants and hospitality
Cost: £10, Markup: 100%Selling Price: £20, Profit: £10100% markup doubles the price—popular for wholesale resellers and boutiques

How to use the Markup Calculator

  1. Enter the cost price (the amount you paid for the product or service)
  2. Enter your desired markup percentage (how much profit you want as a % of cost)
  3. Click 'Calculate' to see your selling price and profit per unit
  4. Compare your result with competitor pricing to ensure market competitiveness
  5. Adjust the markup up or down if you want to test different pricing scenarios
  6. Use the selling price as your recommended retail or service charge

Benefits

  • Set prices that guarantee profit without guesswork or spreadsheet errors
  • Test multiple markup scenarios in seconds to find the right price point
  • Ensure consistency across your entire product range or service menu
  • Cover operational costs and build sustainable business margins
  • Negotiate confidently with suppliers knowing your break-even point
  • Make faster pricing decisions for new products or seasonal inventory

Tips & common mistakes

Common mistakes

  • Confusing markup with margin—a 30% markup is not the same as a 30% margin (margin is lower)
  • Setting markup too low to cover hidden costs like storage, shipping, and staff time
  • Ignoring competitor prices and setting markup so high that customers shop elsewhere
  • Forgetting to account for taxes, discounts, and returns when finalizing your selling price

Tips

  • Industry standard markups vary: retail often runs 40–50%, restaurants 60–100%, wholesale 20–30%
  • Factor in overhead costs (rent, utilities, labour) before you finalise your markup percentage
  • Use the calculator regularly when sourcing new suppliers—a small cost saving can boost profit significantly
  • Test a lower markup on bestsellers to drive volume, and higher markup on slower items to offset risk

Frequently asked questions

What's the difference between markup and margin?

Markup is the amount added to cost (e.g., 30% markup on £100 cost = £130 selling price); margin is profit as a percentage of selling price (£30 profit ÷ £130 = 23% margin). Markup is always higher than the equivalent margin.

What markup percentage should I use?

It depends on your industry: retail 40–60%, restaurants 60–100%, services 30–50%, wholesale 20–30%. Factor in overhead, taxes, and competition, then test with this calculator.

Can I calculate markup if I know my target selling price?

Yes. Rearrange the formula: Markup % = ((Selling Price – Cost Price) / Cost Price) × 100. This calculator works forward from cost to price; reverse the logic if you're working backward.

Does markup include tax?

No. Markup is calculated on cost before tax. Add sales tax or VAT to your final selling price separately based on your local tax rate.

Why does my profit per unit seem low?

You may be underestimating costs—factor in storage, shipping, packaging, staff, and waste. Recalculate with a more realistic cost figure to see if you need to raise your markup.

How do I use this for services instead of products?

Use your hourly rate or labour cost as the 'cost price', then add markup for overheads, tools, insurance, and profit. For example, a mechanic with a £30/hour labour cost might add a 100% markup to charge £60/hour.

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FreeTooz Editorial Team · Last reviewed July 2026

Reviewed for accuracy. Results are estimates for general information and are not professional (medical, financial or legal) advice.