Calculation desk / pricing
Markup Calculator
Turn a unit cost and markup percentage into a selling price and gross profit.
Markup Calculator: Set a selling price by adding a chosen percentage to unit cost. The result shows the price and the amount above cost, helping you price an item when your percentage is specified as markup rather than profit margin. Runs 100% locally in your browser with zero server file uploads.
- Category
- Calculators
- Runs
- In your browser
- Cost
- Free · no sign-up
- Availability
- Ready to use
Selling price
$70.00
- Gross profit
- $20.00
Selling price = cost × (1 + markup ÷ 100)- Markup is measured against cost, not selling price.
- The result does not add tax, discounts, or transaction fees.
Formula and worked example
Selling price = cost × (1 + markup ÷ 100)
A worked example with sample values:
| Inputs | |
|---|---|
| Unit cost | $50.00 |
| Markup | 40% |
| Results | |
|---|---|
| Selling price | $70.00 |
| Gross profit | $20.00 |
Cost-based pricing: formula and example
Gross profit = unit cost × markup percentage ÷ 100. Selling price = unit cost + gross profit. A cost of 50 and markup of 40% give 50 × 40 ÷ 100 = 20 profit and 50 + 20 = 70 selling price. Use one currency for both cost and the resulting price.
OpenStax explains percentage markup as an addition based on original cost (https://openstax.org/books/contemporary-mathematics/pages/6-2-discounts-markups-and-sales-tax). Decide which purchasing, delivery or preparation costs belong in your unit cost before applying the percentage; omitted costs reduce the profit you actually retain.
Markup to margin conversion table
For markup percentage m, margin (%) = 100 × m ÷ (100 + m). The table converts identical cost-and-price relationships, with percentages rounded to two decimal places where necessary. These values are arithmetic examples rather than pricing recommendations.
| Markup on cost | Equivalent margin on price |
|---|---|
| 0% | 0% |
| 10% | 9.09% |
| 25% | 20% |
| 40% | 28.57% |
| 50% | 33.33% |
| 100% | 50% |
Markup can exceed 100% because it is measured against cost. With positive cost and a non-negative markup, margin stays below 100%. A zero markup sells at cost, while a zero cost input returns zero price and profit in this tool; it cannot infer a selling price from a cost base of zero.
How to use it
- Enter values that cover the same scope and reporting period.
- Choose a display currency when the calculation includes money.
- Calculate, then review the formula and assumptions beside the result.
Privacy & limitations
Every value and calculation stays in your browser. This is a planning utility, not accounting, tax, legal, or investment advice. Verify material decisions in your source system and with an appropriate professional.
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Frequently asked questions
Is a 40% markup the same as a 40% margin?
No. Markup uses cost as its base, whereas margin uses selling price. Adding 40% to a cost of 50 gives a price of 70 and profit of 20. That profit is 40% of cost but about 28.57% of the selling price.
How do I choose markup for a target margin?
For a target margin percentage g below 100, equivalent markup (%) = 100 × g ÷ (100 − g). A 20% target margin needs 25% markup. This widget accepts the markup percentage, so convert the margin before entering it.
Can I include tax or a discount in the markup?
The result adds only the entered markup to cost. It has no tax, discount or fee fields. Work out those adjustments separately; a later discount reduces the profit and margin achieved at the calculated selling price.
Embed this tool
Free to use on any website. Paste the code where the tool should appear; the link under it lets readers open the full page.
<iframe src="https://toea.com/embed/markup-calculator" title="Markup Calculator" width="100%" height="780" style="border:0;max-width:680px" loading="lazy"></iframe>
<p style="margin:4px 0 16px;font-size:13px"><a href="https://toea.com/markup-calculator">Markup Calculator</a> · TOEA</p>
<script>addEventListener("message",function(e){if(e.origin!=="https://toea.com"||!e.data||e.data.type!=="toea-embed-height")return;document.querySelectorAll("iframe").forEach(function(f){if(f.contentWindow===e.source)f.style.height=e.data.height+"px"})})</script>Free tool · runs in your browser · no account required