Markup Calculator
Calculate selling price, gross profit, and resulting profit margin from a product or service cost and markup percentage. Calculations stay in your browser.
Calculator
Results
Estimate scope
Gross profit here is selling price minus the entered cost. Taxes, processing fees, shipping, overhead, advertising, and other expenses are not automatically included.
How it works
What is markup?
Markup is the amount added to cost to establish a selling price. A markup percentage is measured relative to cost, not relative to the final selling price.
Calculating gross profit and selling price
Gross profit equals cost multiplied by markup percentage divided by 100. Selling price equals cost plus that gross profit. This page uses unrounded values throughout the calculation and rounds currency only for display.
Markup versus profit margin
Markup divides gross profit by cost, while profit margin divides gross profit by selling price. A 25% markup therefore produces a 20% margin, not a 25% margin. Use the Profit Margin Calculator when revenue and cost are already known and you want to compare them directly.
Pricing beyond direct cost
Gross profit here means selling price minus the single cost entered. A practical price may also need to cover taxes, payment-processing fees, shipping, overhead, advertising, returns, and other business expenses. The calculated gross profit is not guaranteed net profit.
Example calculation
Illustrative pricing example, separate from your calculation:
- Cost price
- $100.00
- Markup
- 25%
- Gross profit
- $25.00
- Profit margin
- 20%
- Selling price
- $125.00
The gross profit is $100.00 × 25% = $25.00. Adding it to cost gives $125.00. Gross profit divided by selling price produces a 20% margin.
Frequently asked questions
What is the difference between markup and margin?
Markup measures gross profit relative to cost. Profit margin measures gross profit relative to selling price. Because they use different denominators, the percentages are usually different.
How do I calculate a selling price from cost and markup?
Multiply cost by the markup percentage to find gross profit, then add that profit to cost. For example, a 25% markup on $100 adds $25 and produces a $125 selling price.
Is a 100% markup the same as a 100% profit margin?
No. A 100% markup doubles the cost, so gross profit is half of the resulting selling price. That produces a 50% profit margin.
Can markup be greater than 100%?
Yes. Markup is measured against cost, so values above 100% are mathematically valid. A 150% markup on $100 adds $150 and produces a $250 selling price.
What happens when the cost is zero?
The calculated gross profit and selling price are zero because markup is applied to cost. Profit margin is N/A because a zero selling price cannot be used as a denominator.
Does the calculation include taxes or operating expenses?
No. It uses only the entered cost and markup. Taxes, processing fees, shipping, overhead, advertising, and other expenses must be considered separately when setting a real price.