Markup Calculator
Enter cost and markup percentage to compute the selling price and markup amount instantly.
Markup Calculator
Find selling price from markup
What is Markup?
To calculate markup, multiply the original wholesale cost by the markup percentage in decimal form (percentage divided by 100) to find the markup amount, then add it to the cost. For example, a 30% markup on a $100 product cost adds $30, resulting in a retail selling price of $130. Mathematically, it is expressed using the formula: Selling Price = Cost * (1 + (Markup Percentage / 100)).
How to Calculate Markup Price
Markup represents the difference between the wholesale cost of a product and its retail selling price. Adding a markup ensures that a business covers operating costs (such as rent, shipping, salaries, and marketing) and generates a net profit. While similar to profit margin, markup is calculated relative to the cost of the item rather than the selling price. Our calculator computes selling prices and gross profits based on cost and markup targets.
The Markup Formula
To find the markup amount and final selling price, use the following formulas:
Markup Amount = Cost × (Markup Percentage / 100)
Selling Price = Cost + Markup Amount
Step-by-Step Calculation Guide
- Convert the markup percentage to a decimal by dividing by 100.
- Multiply the wholesale cost of the item by this decimal to find the markup amount.
- Add the markup amount to the cost price to determine the retail selling price.
Real-World Example Calculations
- 50% markup on a $30 cost: Markup Amount = $30 × 0.50 = $15. Selling Price = $30 + $15 = $45.
- 30% markup on a $120 cost: Markup Amount = $120 × 0.30 = $36. Selling Price = $120 + $36 = $156.
- 100% markup on a $50 cost: Markup Amount = $50. Selling Price = $50 + $50 = $100. (A 100% markup is also known as "keystone pricing").
Common Use Cases
- Wholesale & Retail: Setting consumer retail prices based on supplier costs.
- Manufacturing: Calculating wholesale pricing markups on finished goods.
- Services: Applying markups to raw material costs passed on to clients.
Frequently Asked Questions
A 100% markup is traditionally called "keystone pricing." It means doubling the cost of an item to set its retail price. It is common in apparel and giftware retail.
The formula is: Margin = Markup / (1 + Markup). A 50% markup (0.50) corresponds to a 33.3% profit margin (0.50 / 1.50 = 0.333).
Retailers use markup because it is calculated directly on cost, which is a known constant. If you buy an item for $10 and want to make a profit, it is simpler to add 50% ($5) to cost than to calculate a target margin.