Finance tools
Markup calculator
Free markup calculator and selling price calculator for US small businesses. Enter cost (COGS) and markup % for live selling price, profit, and margin, or reverse-calculate markup from price, hit a target margin, or convert margin ↔ markup. For margin-first pricing, see our profit margin calculator. No submit button. Export CSV or PDF when you are done.
What markup means
Markup is profit expressed as a percentage of your cost of goods sold (COGS), the amount you add on top of cost to set a selling price. It is not the same as profit margin, which uses selling price as the base.
If a product costs $80 and you sell it for $100, profit is $20. Markup = $20 ÷ $80 = 25% markup. Gross margin = $20 ÷ $100 = 20% margin, same dollars, different denominator.
This tool is for product and service pricing, not stock-trading or forex “margin” (see FAQ).
Set price (default)
Cost + markup % → selling price, profit, and margin in one view.
Find markup
Reverse markup calculator: cost + selling price → markup % and margin %.
Target margin
Cost + desired gross margin % → required markup and selling price.
Convert
Margin ↔ markup conversion with optional cost for dollar profit.
Markup vs margin
Markup divides profit by cost. Margin (gross margin / profit margin) divides profit by selling price. For the same sale, markup % is always higher than margin %, treating them as interchangeable is a common pricing mistake.
Conversion formulas
Margin % = Markup % ÷ (100 + Markup %) × 100
Markup % = Margin % ÷ (100 − Margin %) × 100
Quick reference: 20% markup → 16.67% margin · 25% markup → 20% margin · 30% markup → 23.08% margin · 50% markup → 33.33% margin. Use the Convert tab for any pair.
| Markup on cost | Equivalent gross margin | Example ($100 cost) |
|---|---|---|
| 20% | 16.67% | Sell at $120 · $20 profit |
| 25% | 20.00% | Sell at $125 · $25 profit |
| 30% | 23.08% | Sell at $130 · $30 profit |
| 50% | 33.33% | Sell at $150 · $50 profit |
| 100% | 50.00% | Sell at $200 · $100 profit |
How to calculate markup
The standard markup formula and selling price formula:
Core formulas
Profit = Selling price − Cost
Markup % = (Profit ÷ Cost) × 100
Selling price = Cost × (1 + Markup % ÷ 100)
Enter your cost (COGS)
Materials, wholesale, or direct labor per unit, what you pay before overhead and profit.
Choose your mode
Set price for markup → price; Find markup to reverse from an existing price; Target margin when you need a specific gross margin %.
Read selling price, profit, and margin
Results update as you type. Export CSV or PDF for quotes, menus, or pricing models.
For generic percent-of, discount, or percent-change math, use the percentage calculator. For sale prices and markdowns, see the discount calculator. For volume and break-even after you set a price, try the break-even calculator.
What your markup should cover
Cost-plus pricing adds a markup % on top of COGS. That only works if your markup also covers everything between COGS and take-home profit, not just materials.
COGS
Materials, manufacturing, wholesale purchase price, direct labor per unit.
Overhead
Rent, utilities, software, insurance, admin salaries, often ignored in simple markup math.
Selling costs
Payment fees, shipping, returns, packaging, use our PayPal fee calculator for card/PayPal estimates.
Target profit
What you want after all costs. Target margin mode helps you price to a gross margin goal.
Loaded-cost example
Product COGS = $40, overhead allocated = $15 → true cost $55. A 25% markup on $40 yields $50 selling price, below loaded cost. Mark up on fully loaded cost, or use a higher markup % and validate with break-even volume.
Typical markup by industry
Benchmarks vary by competition, channel, and positioning. Use as planning guides, verify against your market and cost structure.
| Industry | Typical markup on cost | Rough gross margin | Notes |
|---|---|---|---|
| Retail & apparel | 50–150% | 33–60% | Higher for boutique or branded goods |
| Grocery & food retail | 5–25% | 5–20% | Low markup, high volume |
| Restaurants | 185–260% on food cost | 65–72% | Food cost often 28–35% of menu price |
| Electronics retail | 5–30% | 5–23% | Phones and laptops often at low single-digit margin |
| Furniture & home | 40–75% | 29–43% | Varies by brand and channel |
| Construction & contracting | 15–30% project | 13–23% | Materials markup often lower than labor |
| Professional services | Varies | 40–70%+ | Labor-heavy; price on value and billable rates |
Related: break-even calculator, employee cost calculator, sales tax calculator (tax is separate from markup, add at checkout if applicable).
Markup in Excel and Google Sheets
These formulas mirror the calculator modes, format result cells as Percentage or multiply decimals directly.
| Task | Formula | Example |
|---|---|---|
| Selling price from markup | =Cost*(1+Markup/100) | =100*(1+25/100) → 125 |
| Markup % from cost & price | =(Price-Cost)/Cost*100 | =(125-100)/100*100 → 25 |
| Margin % from cost & price | =(Price-Cost)/Price*100 | =(125-100)/125*100 → 20 |
| Price from target margin | =Cost/(1-Margin/100) | =100/(1-0.2) → 125 |
| Convert margin to markup | =Margin/(1-Margin)*100 | =0.2/(1-0.2)*100 → 25 |
Run a scenario above, then export CSV to open in Excel or Sheets, inputs, mode, and results included.
How to use this calculator
Pick a mode
Set price (default), Find markup, Target margin, or Convert, tabs match how you already think about pricing.
Enter cost and your known value
Cost plus markup %, selling price, target margin %, or a percentage to convert. Optional cost in Convert mode adds dollar profit.
Review results and export
Check selling price, profit, markup %, and margin %. Copy the summary or download CSV/PDF for your team.
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Frequently asked questions about this markup calculator
What is markup?
Markup is profit as a percentage of cost. It tells you how much to add on top of COGS to reach a selling price, for example, 25% markup on $80 cost adds $20 profit for a $100 price (20% gross margin).
How do you calculate markup?
Subtract cost from selling price to get profit, then divide profit by cost and multiply by 100: Markup % = (Selling price − Cost) ÷ Cost × 100. Or enter cost and markup % in Set price mode for instant results.
What is the markup formula?
Selling price = Cost × (1 + Markup % ÷ 100). Equivalently, Markup % = 100 × Profit ÷ Cost where profit = selling price − cost. Reverse: enter cost and price in Find markup mode.
What is the difference between markup and profit margin?
Markup uses cost as the base; profit margin (gross margin) uses selling price. A 25% markup equals a 20% margin on the same sale. Use the Convert tab or the comparison table above. For a dedicated margin-first tool, see our profit margin calculator.
Is 20% margin the same as 25% markup?
Yes, they describe the same profit on one sale. 20% margin means profit is 20% of the selling price; 25% markup means profit is 25% of cost. On $100 cost → $125 price and $25 profit.
Is 30% markup the same as 30% margin?
No. 30% markup on $100 cost → $130 price and 23.08% margin ($30 ÷ $130). To get a 30% margin, you need about 42.86% markup ($100 cost → $142.86 price). Use Target margin or Convert mode.
How much margin is a 20% markup?
A 20% markup equals a 16.67% gross margin. Example: $100 cost + 20% markup → $120 selling price, $20 profit, margin = 20 ÷ 120 = 16.67%.
What is a 25% markup on $100?
A 25% markup on $100 cost adds $25 profit for a $125 selling price. The gross margin is 20% ($25 ÷ $125).
What is a 20% markup on $100?
A 20% markup on $100 cost adds $20 profit for a $120 selling price. The gross margin is 16.67% ($20 ÷ $120).
Is this calculator for stock trading or forex margin?
No. This tool is for product and service pricing (COGS + markup → selling price). Stock, forex, and brokerage “margin” mean borrowed capital, not gross profit margin on a sale. Free live results with optional CSV/PDF export.