Markup Calculator

How to use the markup calculator

Enter your cost price — the amount you paid to acquire or produce the item — in the Cost field. Then enter the markup percentage you want to apply in the Markup (%) field. The calculator immediately shows the markup amount in dollars and the resulting selling price. For example, a product that costs $40 with a 50% markup has a $20 markup amount and a $60 selling price. Use this to price products, set hourly rates, or verify that a proposed selling price gives you the margin you need.

How the markup calculator works

Markup is always calculated on cost, not on selling price. Formula: Markup Amount = Cost × (Markup% ÷ 100); Selling Price = Cost + Markup Amount. For a $100 item with a 40% markup: $100 × 0.40 = $40 markup; $100 + $40 = $140 selling price. An important distinction: markup and gross margin are different numbers. A 40% markup gives a gross margin of 28.6% (40 ÷ 140 × 100). Confusing the two is a common pricing mistake that leads to underpricing products.

When to use this calculator

Use the markup calculator whenever you need to set or verify a selling price from a known cost. Retailers use it to price merchandise that must cover cost of goods, shipping, platform fees, and still generate profit. eCommerce sellers apply it to ensure each product listing is profitable after Amazon or Etsy fees. Freelancers and agencies mark up direct costs (contractor rates, software subscriptions) to cover overhead. Manufacturers apply markup to raw material and labor costs to price finished goods. Restaurants use food cost percentage — which is the inverse of markup — to set menu prices. Any business that buys or produces something and resells it needs markup math.

Frequently asked questions