Markup formula
Markup is profit divided by cost. To apply a markup percentage, multiply the cost by 1 plus the markup rate.
ExampleA 25% markup on a cost of 100 adds 25 of profit and produces a selling price of 125.
Markup Calculator
Turn a cost and markup percentage into selling price, profit and margin.
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If an item costsand I add% markup, what should I charge?
Markup is measured against cost. Margin is measured against the final selling price.
Selling price—
Profit—
Markup—
Resulting margin—
Cost—
Markup is not the same as margin
A 25% markup does not create a 25% margin. On a cost of 100 and selling price of 125, the margin is 20% because profit is measured against selling price.
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Common questions
How do I convert markup to selling price?
Selling price = cost × (1 + markup percentage as a decimal).
Why is margin lower than markup?
Markup divides profit by cost, while margin divides the same profit by the higher selling price.
Can markup exceed 100%?
Yes. A 100% markup doubles the cost; larger markups are mathematically valid as well.