Markup Calculator
Calculate markup percentage in seconds. Enter your cost and your selling price (revenue) to instantly see your markup percentage, gross profit, and profit margin — using the standard markup = (revenue − cost) / cost × 100 formula.
ToolsSoup's Markup Calculator shows how much you are adding on top of your cost when you set a price. Enter what an item costs you and the price you sell it for, and you instantly see your markup as a percentage, your gross profit per unit, and your profit margin. It uses the standard formula markup = (revenue − cost) / cost × 100, so the numbers match what your spreadsheet and your accountant expect. Use it to price products, mark up materials and labor, or work out the right sell price for a target profit. Everything runs in your browser: no uploads, no sign-up, and your figures never leave your device.
What is markup?
Markup is the amount you add to the cost of an item to get its selling price, expressed as a percentage of the cost. If something costs you $40 and you sell it for $100, you have added $60 on top of the cost, and because $60 is 150% of $40, your markup is 150%. Markup answers the question "how much more than cost am I charging?" It is the most intuitive way to set prices because you start from what you paid and add a percentage, which is why retailers, contractors, and wholesalers quote prices in markup terms.
How to calculate markup
Markup needs just two numbers, and this tool does the math automatically as you type:
- Enter your cost — what it costs you to make or buy the item.
- Enter your revenue — the price you sell it for.
- Read your markup, gross profit, and profit margin below.
What is the markup formula?
The formula is markup = (revenue − cost) / cost × 100. First find your gross profit by subtracting the cost from the revenue, then divide that profit by the cost and multiply by 100 to get a percentage. For example, a product that costs $40 and sells for $100 has a gross profit of $60, and $60 ÷ $40 = 1.50, or a 150% markup. If you instead know the markup you want, you can reverse it: selling price = cost × (1 + markup ÷ 100), so a $40 cost at 150% markup gives a $100 price.
Markup vs. margin: what's the difference?
Markup and margin use the same gross profit but divide it by different numbers, so they are never equal. Markup is profit as a percentage of the cost (profit / cost), while margin is profit as a percentage of the selling price (profit / revenue). For a $40 cost sold at $100, the markup is 150% but the margin is 60%, because $60 of profit is 150% of the $40 cost yet only 60% of the $100 price. Mixing the two up is a classic pricing error — this calculator shows both so you always know which one you are quoting.
Why use this markup calculator?
- Instantly shows your markup percentage, gross profit, and profit margin from just cost and revenue.
- Uses the standard markup = (revenue − cost) / cost × 100 formula businesses and accountants expect.
- Reports profit margin alongside markup so you never confuse the two when setting prices.
- Handles losses cleanly, showing a negative markup and negative profit when revenue is below cost.
- Updates live as you type, runs entirely in your browser, and is 100% free with no ads or sign-up.
Frequently asked questions
How do I calculate markup?
Subtract your cost from your revenue to get gross profit, divide that profit by the cost, and multiply by 100 to get a percentage. Enter your cost and selling price above and the calculator returns the markup, gross profit, and margin instantly.
What is the markup if cost is $40 and the price is $100?
Gross profit is $60, and $60 ÷ $40 = 1.50, so the markup is 150% and the profit margin is 60%. Change either field above to model your own cost and price.
What is the difference between markup and margin?
Markup is profit divided by the cost, while margin is profit divided by the selling price. For a $40 cost sold at $100, the markup is 150% but the margin is 60%. They use the same profit but different denominators, so they are never the same number.
How do I find the selling price from a markup?
Multiply the cost by one plus the markup as a decimal: selling price = cost × (1 + markup ÷ 100). For a $40 cost at a 150% markup, that is $40 × 2.5 = $100. You can also just type a price into the revenue field above and read off the markup it produces.
What is a good markup percentage?
It depends heavily on your industry and costs. Retail markups commonly range from about 50% to 100%, restaurants often mark food up 200% to 300%, and many wholesalers work on much thinner markups. Compare your markup to typical figures in your own field, and make sure it covers all your overhead and still leaves a profit.