AixKit
All-in-One Online Calculators
AixKit
All-in-One Online Calculators
Part of: Finance →
Markup is the most direct way to price from cost. Use this markup calculator to calculate markup percentage, convert cost to selling price, and confirm the resulting gross margin — all in one step. Built for retail, wholesale, and supplier pricing, it shows markup and margin together so you always see both sides of every pricing decision. Ideal for anyone who needs to calculate markup %, set trade prices from cost, or verify that their pricing structure achieves the margin they expect.
Confusing markup with margin is one of the most common pricing mistakes in retail — this calculator shows both so you can avoid it.
Key Formula
Markup (%) = (Profit ÷ Cost Price) × 100
Margin (%) = (Profit ÷ Selling Price) × 100
Example: Cost 100 → Selling Price 150 → Profit 50 → Markup 50% → Margin 33.33%
Used by retailers, wholesalers, and suppliers to price products from cost with full margin visibility. No data stored. Calculations run instantly in your browser.
Tip: Use “Selling Price from Markup” mode to find the exact price to charge given your cost and target markup %.
Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100
This formula shows how much profit is added on top of cost.
Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of the cost price. It is the fundamental tool of cost-based pricing — widely used by retailers, wholesalers, manufacturers, and distributors who need to price consistently from known cost inputs.
Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100
If you buy a product for $80 and sell it for $120, your profit is $40. The markup is 40 ÷ 80 × 100 = 50%. The margin on the same transaction is 40 ÷ 120 × 100 = 33.33% — a different number measuring a different thing.
Example:
Cost: $100 | Selling Price: $150 | Profit: $50
Markup: 50 ÷ 100 × 100 = 50%
Margin: 50 ÷ 150 × 100 = 33.33%
Markup is always higher than margin when both are calculated on the same transaction with positive profit.
This calculator works alongside the Profit Margin Calculator to give a complete pricing view — markup tells you what to add on top of cost, while margin tells you how that profit compares to the final selling price.
Markup and margin are both calculated from the same transaction but measure different things. Understanding the difference prevents systematic pricing errors that quietly erode profit over time.
| Metric | Based On | Formula | Example (Cost 100, Price 150) |
|---|---|---|---|
| Markup % | Cost price | (Profit ÷ Cost) × 100 | 50 ÷ 100 × 100 = 50% |
| Margin % | Selling price | (Profit ÷ Selling Price) × 100 | 50 ÷ 150 × 100 = 33.33% |
Markup % is always higher than margin % for the same sale. A 50% markup does not produce a 50% margin — it produces 33.33%. A 100% markup produces only a 50% margin. For the full margin picture and multi-mode margin calculations, see the Profit Margin Calculator.
If you know your cost and need to set a selling price at a specific markup percentage, the formula is straightforward:
Selling Price = Cost Price × (1 + Markup % ÷ 100)
For a product costing $80 with a 60% markup target: Selling Price = 80 × 1.60 = $128. The resulting gross profit is $48, with a margin of 48 ÷ 128 = 37.5%.
These formulas let you move between the two measures:
Example: a 50% markup converts to a margin of 50 ÷ 150 × 100 = 33.33%. A 40% margin converts to a markup of 40 ÷ 60 × 100 = 66.67%.
For quick percentage cross-checks on any number in your pricing, the Percentage Calculator is a useful companion tool. To convert your markup target directly into a final price with margin validation, use the Selling Price Calculator — it covers margin-based, markup-based, profit-amount, and revenue-goal pricing in one tool.
Markup is the default pricing method in many industries because it starts from a known, controllable number — the cost. Several sectors rely on it as the foundation of their pricing strategy:
If your business operates on narrow margins or high volume, applying the correct markup consistently across all SKUs is one of the most impactful things you can do to protect profitability. Even a 2–3% improvement in markup across a product range can significantly outperform the equivalent increase in sales volume.
The most common error. Applying a "50% profit target" as a 50% markup produces only 33.33% margin. If your business requires 40% gross margin, the required markup is 66.67% — not 40%.
Markup must be calculated on cost. If you divide profit by the selling price instead, you are calculating margin — and applying that as a markup will underprice consistently.
A correct cost base includes purchase price, freight, import duty, packaging, and any direct handling costs. Omitting any of these overstates markup and understates the true cost of goods.
Applying markup to cost for some products and margin for others — or mixing percentage bases — makes pricing impossible to review or audit. Standardise on one method and document it.
A 10% promotional discount on a product with 30% markup is a much larger erosion of profit than it appears. Use the Discount Calculator to model exactly how discounts affect your margin before applying them.
If you are GST-registered, calculate markup on the GST-exclusive (net) cost and selling price. Including GST in either figure distorts the markup percentage. Use the GST Calculator to extract the net figure before running your markup calculation.