How to Price With a Markup Percentage
Markup pricing starts from what something costs you and adds a chosen percentage. This guide shows the calculation and how it differs from margin.
What is the Markup Calculator?
This tool multiplies the cost by one plus the markup percentage as a decimal to get the selling price. The markup amount is the selling price minus the cost. Markup is measured against cost, which is different from margin, which is measured against the selling price.
How to use it
- Enter the cost of the item.
- Enter the markup percentage you want to add.
- Read the selling price and the markup amount.
Worked example
Cost 50 with 40% markup: markup amount 20, selling price 70.
What is the selling price for a cost of 50 with a 40% markup?
The selling price is 70 and the markup amount is 20. Multiply 50 by 1.40 to get 70, then subtract the cost of 50 to find the markup of 20.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a share of cost, while margin is profit as a share of selling price. The same sale gives a higher markup percentage than margin percentage.
Can markup be zero?
Yes, a 0% markup means the selling price equals the cost and there is no profit built in.