How to calculate markup percentage
Markup% = (price − cost) ÷ cost × 100. For a cost of $80.00 and a selling price of $100.00:
- Profit: $100.00 − $80.00 = $20.00
- Markup: $20.00 ÷ $80.00 × 100 = 25%
- Margin (profit ÷ price instead): $20.00 ÷ $100.00 × 100 = 20%
Cost-plus pricing: price from cost and target markup
Price = cost × (1 + markup% ÷ 100). This is the classic "cost plus X%" way to set a price. Cost $80.00 at a 25% target markup → price $100.00. Going the other way, cost = price ÷ (1 + markup% ÷ 100): price $100.00 at a 25% target markup → cost $80.00. Switch modes in the calculator above to solve either direction with your own numbers.
Markup vs. margin (briefly)
Markup and margin describe the same sale from two angles: markup divides profit by cost, margin divides it by price. Markup is always the larger percentage when there's a profit -- a 25% markup here is only a 20% margin. For the full conversion formula and a side-by-side comparison, see the margin calculator.
| Target markup | Price | Profit | Margin |
|---|---|---|---|
| 10% | $88.00 | $8.00 | 9.09% |
| 15% | $92.00 | $12.00 | 13.04% |
| 20% | $96.00 | $16.00 | 16.67% |
| 25% | $100.00 | $20.00 | 20% |
| 30% | $104.00 | $24.00 | 23.08% |
| 40% | $112.00 | $32.00 | 28.57% |
| 50% | $120.00 | $40.00 | 33.33% |
| 75% | $140.00 | $60.00 | 42.86% |
| 100% | $160.00 | $80.00 | 50% |
| 150% | $200.00 | $120.00 | 60% |
Table computed at a cost of $80.00. Enter your own cost above to recalculate it.
More pricing tools
- Margin calculator: profit margin from cost and price, with the full margin vs markup breakdown.
- Discount calculator: sale price and savings from a price and percent off, with stacked discounts and tax.
- eBay fee calculator: net payout and profit after eBay's final value and other fees.
Frequently asked questions
What is the markup formula?
Markup% = (selling price − cost) ÷ cost × 100. At a cost of $80.00 and a price of $100.00: profit is $20.00, and $20.00 ÷ $80.00 × 100 = 25% markup.
How do I calculate percent markup?
Subtract cost from price to get your profit, divide by the cost, then multiply by 100. For a $80.00 cost and $100.00 price: ($100.00 − $80.00) ÷ $80.00 × 100 = 25%.
How do I find the selling price for a target markup?
Price = cost × (1 + markup% ÷ 100). At a cost of $80.00 and a target markup of 25%: $80.00 × 1.25 = $100.00. Use the "Cost + target markup" mode above for your own numbers -- this is standard cost-plus pricing.
How do I find my cost if I know the price and target markup?
Cost = price ÷ (1 + markup% ÷ 100). At a price of $100.00 and a target markup of 25%: $100.00 ÷ 1.25 = $80.00. Use the "Price + target markup" mode above for your own numbers.
Is markup the same as margin?
No -- markup divides profit by cost, margin divides the same profit by the selling price, so markup is always the bigger number when there's a profit. A 25% markup on a $80.00 cost equals only a 20% margin on the $100.00 price. Pricing from the wrong one is a common mistake -- see the margin calculator for the full margin vs markup breakdown and the conversion formula.
What is a 50% markup in dollars?
A 50% markup means price = cost × 1.5. On a $10 cost that's a $15 price ($5 profit); on a $40 cost that's a $60 price ($20 profit). The dollar amount always scales with the cost -- only the percentage stays fixed at 50%.
What is a good markup percentage?
It depends heavily on the industry and how many times a product changes hands before reaching the customer. Retail commonly runs a 50-100% markup (roughly a 33-50% margin); restaurants often markup food cost 200-400% (300-400% on beverages) to cover labor, rent and waste; wholesale/distribution markups are usually much thinner, often 10-30%, on higher volume. Compare to others in your specific industry rather than to one universal number.
Can markup be negative?
Yes -- a negative markup means you're selling below cost, which happens with loss-leaders, clearance stock or a pricing mistake. The calculator above still computes it: enter a price lower than cost in "Cost + price" mode, or a negative percent in "target markup" mode.
Does this calculator include sales tax or fees?
No -- it computes markup, margin and price from the cost and selling price you enter, before any sales tax or marketplace/payment fees. For selling on eBay or through PayPal, see the eBay fee calculator and PayPal fee calculator, which net those fees out of your payout separately.
Is my data saved or sent anywhere?
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