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.