Finance & Banking CalcyZone Calculator

Markup Calculator

Calculate retail selling prices, gross profit, and markup percentages from cost.

Calculator Currency

Selected: US Dollar ($)

Cost Price ($)

Markup (%)

Financial Calculation Solution

Selling Price = $120.00

Profit: $20.00

Mathematical Formula

Selling Price = Cost * (1 + Markup / 100)

Overview & Explanation

Markup is the percentage added to cost price to establish a profitable retail selling price.

How It Works

Multiply cost by markup percentage to find profit amount.
Add profit to cost.

Practical Applications

Pricing retail inventory.
E-commerce product pricing strategy.

Markup explained

Markup is the amount added to cost to arrive at a selling price, expressed as a percentage of cost. Selling price = cost × (1 + markup). An item that costs ₹400 with a 25% markup sells for ₹400 × 1.25 = ₹500.

Markup percentage = (price − cost) ÷ cost × 100. If you buy at ₹400 and sell at ₹500, the markup is 100 ÷ 400 = 25%.

Markup versus margin

Margin divides the same profit by the selling price instead of cost, so it is always smaller than markup. The ₹500 item has a ₹100 profit, a 25% markup but only a 20% margin.

The two convert with simple formulas: margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). A 50% markup equals a 33.3% margin, and a 100% markup (doubling the cost) equals a 50% margin. Mixing them up is one of the most common pricing errors in small businesses: a shop that wants a 30% margin but adds 30% to cost actually earns only about 23%.

Setting a sensible markup

Your markup has to cover more than the purchase price: shipping, storage, payment fees, spoilage, returns and overheads all come out of it. Retail markups differ widely by category, from thin markups on groceries and electronics to much larger ones on fashion and accessories. Compare your price with competitors and check that the resulting margin still leaves a profit after overheads.