CalcCrafted

Markup Calculator

Apply a markup percentage to cost and see the resulting selling price and profit margin.

Turn a known cost and desired markup into a selling-price estimate, then see the equivalent margin.

Enter your details

Cost and desired markup

$

%

Your estimate will appear here

Complete the fields and calculate to see a detailed result.

Using markup to set a price

Markup starts with cost. A 40% markup adds 40 cents per cost dollar; it does not create a 40% margin.

Formula and methodology

Markup amount = cost × markup %. Selling price is cost plus markup. Margin is markup amount ÷ selling price × 100.

Worked example

A $50 cost with 40% markup adds $20 and produces a $70 price. The resulting margin is 28.57%, because profit is divided by revenue.

Assumptions and limitations

The price excludes sales tax and does not test demand, competitors, discounts, returns, overhead allocation, or target net profit.

Frequently asked questions

Why is margin lower than markup?

Markup uses cost; margin uses the higher selling price.

Can markup be zero?

Yes. Price then equals cost and margin is zero.

Does price include tax?

No. Add applicable sales tax separately.

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