Markup Calculator
Last updated: November 14, 2026
Direct answer. Markup % = (Price − Cost) ÷ Cost × 100. Selling price from a markup is Cost × (1 + Markup % ÷ 100). A $50 cost and a $75 price is a 50% markup. A 50% markup on a $50 cost is also a $75 price.
Markup is the profit measured as a percentage of cost, a common language for U.S. wholesale, retail, and shop-rate pricing. It is not the same as margin, which uses selling price as the base. This calculator finds the markup percent from a cost and a price, or builds a price from a cost and a target markup.
Markup Calculator
Markup is the profit as a percentage of cost, not of the selling price. Use this tool to find the markup or the selling price from a chosen markup.
Result
Key takeaways
- Markup is profit divided by cost, times 100.
- A $50 cost and $75 price is a 50% markup, and $25 of profit.
- Margin on the same numbers is 33.33%, because margin uses price as the base.
- A cost of 0 cannot produce a markup percent, because that would divide by zero.
How to use this calculator
- Choose whether you want the markup percent or a selling price.
- To find the percent, enter cost and selling price in dollars.
- To find a price, enter cost and the markup percent. Read the profit in dollars as well.
The formula
Both modes use the same relationship. Profit is Price − Cost. Markup divides that profit by cost. Units are dollars for cost, price, and profit, and percent for markup.
Worked examples
| Cost | Selling price | Profit | Markup |
|---|---|---|---|
| $50 | $75 | $25 | 50% |
| $40 | $50 | $10 | 25% |
| $80 | $80 | $0 | 0% |
Profit is 25. 25 ÷ 50 × 100 = 50% markup.
Selling price = 50 × 1.50 = 75. Profit is still $25.
When this is useful in the United States
A U.S. retailer setting a shelf price from a landed wholesale cost often starts with a markup percent, then checks the margin later for a profit-and-loss review.
A tradesperson quoting materials can apply a materials markup and still show the customer a single price.
Comparing two vendors is easier if you convert both quotes to markup on the same cost basis rather than eyeballing the dollar gap.
Common mistakes
- Calling a 50% markup a 50% margin. On $50 cost and $75 price, margin is 25 ÷ 75 ≈ 33.33%.
- Dividing profit by selling price and labeling it markup.
- Using a cost of zero. The markup percent is undefined.
Keep cost and price in the same currency and on the same unit, such as a single item or a case, not a mix of both. Freight, payment fees, and returns are not deducted automatically; if those belong in cost, add them before you calculate markup. For a walk-through of why markup and margin diverge as the percent grows, see the site’s guide on profit percentage versus margin versus markup. Markup questions in a U.S. shop usually start with a landed cost that already includes freight you intend to recover. If freight is invoiced separately to the customer, do not bury it in cost and also add it to the ticket. Promotional prices and employee discounts change the selling price and therefore change the realized markup after the fact; this calculator reports the markup on the cost and price you type, not a later markdown. A 100% markup doubles the cost; a 200% markup triples it. Those figures are easy to confuse with margin, which can never reach 100% unless cost is zero. Keep the two words separate when you talk with a bookkeeper or a lender. When a price list is in cases or in single units, keep cost and price on that same unit so the markup percent is meaningful. If you later mark an item down, the realized markup changes; re-run the percent mode on the new selling price instead of reusing the planned figure. A planned markup is not a guarantee of cash profit after returns, spoilage, or card fees. If those costs are regular, some sellers fold an allowance into cost before they set the markup. That is a policy choice. The formula on this page will still be the same; only the cost input changes.
Frequently asked questions
What is the markup on a $50 cost and a $75 price?
It is 50%, because the $25 profit is half of the $50 cost.
How do I set a price with a 50% markup?
Multiply the cost by 1.50. A $50 cost becomes a $75 price.
Is markup the same as profit percentage?
Markup is profit as a percent of cost, which is also how this site’s profit-percentage tool is defined when cost is the base. Margin is different because it uses price as the base.
Can markup be more than 100%?
Yes. A $20 cost sold at $50 is a 150% markup, because the $30 profit is 1.5 times the cost.