Markup turns your product cost into a customer price. This calculator shows the selling price, gross profit, and resulting profit margin for any cost and markup percentage.
How to use this calculator
- Enter your product or unit cost.
- Enter the markup percentage you want to apply.
- Review selling price, gross profit, and margin %.
- Use the chart to compare cost versus final price.
Formula
Selling price = Cost × (1 + Markup ÷ 100). Gross profit = Selling price − Cost. Profit margin (%) = (Gross profit ÷ Selling price) × 100.
Example
A product that costs $40 with a 50% markup sells for $60, yielding $20 gross profit and a 33.3% profit margin.
Frequently asked questions
- Is markup calculated on cost or price?
- Markup is always applied to cost in this calculator: Price = Cost × (1 + Markup%). Margin is profit divided by selling price.
- What markup gives a 50% margin?
- A 100% markup on cost produces a 50% profit margin. Margin and markup use different denominators.
- Should I include shipping in cost?
- Include any cost you incur to deliver the product. Omitting shipping or payment fees understates true cost and overstates margin.
- How is this different from the Product Pricing calculator?
- This tool applies a simple markup to cost. Product Pricing accounts for platform fees, sales tax, and target profit margins in a more detailed model.