Business

Markup Calculator

Calculate markup percentage from cost and selling price to check whether pricing covers margin targets.

Last reviewed: April 30, 2026Free toolMethodology

Markup Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Markup is the language many merchandisers, distributors, and service teams use when setting prices from a known cost base.

When to use

  • Creating a retail or wholesale pricing sheet
  • Checking how a supplier price increase affects final selling price
  • Comparing products with very different cost bases

Inputs & Outputs

Inputs

  • Cost is your landed or fully loaded direct unit cost.
  • Selling price is the planned or actual price before tax.

Outputs

  • Markup percentage shows how much profit is added relative to cost.
  • Unit profit shows the absolute amount earned before overhead.

Markup formula

Subtract cost from price to get unit profit, then divide unit profit by cost to express markup as a percentage.

Markup = ((selling price - cost) / cost) x 100

Worked example

1

Product pricing sheet

A product costs 22 landed and sells for 37.

Inputs

  • Cost: 22
  • Selling price: 37

Steps

  • Unit profit = 37 - 22 = 15
  • Markup = 15 / 22 = 68.18%

Result

  • The item carries a 68.18% markup and 15 in unit profit.

Edge cases & caveats

  • High markup does not always mean high margin because the base is cost, not revenue.
  • Use a fully loaded cost if packaging, freight, or commissions are material.

Frequently Asked Questions

Why is markup higher than margin?

Markup uses cost as the base, while margin uses revenue. The same product can show 50% markup and 33.3% margin at the same time.

Should I price from markup or margin?

Use the convention your team manages best, but convert both when making decisions so pricing and profitability stay aligned.

Keep going

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