Markup Calculator

Cost per Unit

Markup %

— or — Selling Price

$90.00

Selling Price

33.3%

Profit Margin

$30.00

Profit per Unit

50.0%

Markup

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How to Use This Markup Calculator

Enter your cost — what the item costs you (your COGS per unit).
Enter a markup % to calculate the selling price — or enter a selling price to find the markup.
Read the results — selling price, profit per unit, markup, and the resulting profit margin.

What Is Markup (and How It Differs From Margin)?

Markup is the amount you add to your cost to set a selling price, expressed as a percentage of cost. If an item costs you $60 and you sell it for $90, you have marked it up by $30, or 50% of cost. Markup is how most businesses actually set prices, because they start from what something costs them and add a percentage on top.

The crucial thing to understand is that markup and margin are not the same number. Margin expresses profit as a percentage of the selling price, not cost. That same $60 cost item sold for $90 is a 50% markup but only a 33.3% margin. This trips up countless business owners: pricing with a "50% margin" in mind but actually applying a 50% markup leaves you with less profit than you think. This calculator shows both at once so you always know where you stand.

Markup Formula

Selling Price = Cost × (1 + Markup%)

Markup % = (Price − Cost) ÷ Cost × 100

Margin % = (Price − Cost) ÷ Price × 100

Example Calculation

An item costs $60 and you apply a 50% markup:

Selling price = $60 × 1.50 = $90
Profit per unit = $90 − $60 = $30
Markup = 50%, but margin = $30 ÷ $90 = 33.3%

Common Mistakes to Avoid

Confusing markup with margin. A 50% markup is a 33% margin — not the same profit.
Marking up incomplete cost. Include shipping, fees, and direct labor in cost, or your markup overstates profit.
Using one markup for everything. Different products may need different markups based on demand and competition.
Forgetting overhead. Markup covers product cost and gross profit, but operating expenses still come out of that margin.

Pricing & Markup for Small Business

Markup is the everyday pricing lever for retailers, manufacturers, and service businesses. Set it too low and you starve the business of profit; too high and you lose competitiveness. The right markup depends on your true costs, your overhead, and your market — and getting it wrong, even by a few points across thousands of units, adds up fast.

If you want to price for healthy margins without losing customers, our team helps businesses build pricing that protects profit. Pair this with our profit margin calculator, and book a free call if you want a CFO\'s eyes on your pricing strategy.

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Frequently Asked Questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. The same dollar profit gives a higher markup number than margin number. A 50% markup equals a 33.3% margin.

How do I calculate selling price from markup?

Multiply your cost by one plus the markup percentage. A $60 cost with a 50% markup gives a selling price of $60 times 1.5, or $90.

What is a good markup percentage?

It varies by industry — retail often runs 50–100%, while some sectors use much more or less. The right markup covers your product cost, contributes to overhead, and leaves profit, while staying competitive in your market.

Why does my margin look lower than my markup?

Because margin divides profit by the higher selling price, while markup divides by the lower cost. The same profit always produces a smaller margin percentage than markup percentage.

Should markup cover all my costs?

Markup covers product cost and gross profit. Operating expenses like rent and salaries still come out of that gross profit, so make sure your markup leaves enough margin to cover overhead and net profit.