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.
More free tools
Discover more calculators for time tracking, payroll, and HR.
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.