Finance
Markup Calculator
Set a selling price from cost and a desired markup percentage.
The selling price is what to charge per unit, and the profit per unit is what remains from each sale after covering its cost.
Formula
Selling price equals cost times one plus markup divided by 100.
How it works
Markup is added on top of cost, while margin is measured against price — a 50% markup gives a 33.3% margin, not 50%. Keep the two apart when pricing.
Worked example
For example, a cost of $40 with a 50% markup gives a selling price of $40 × (1 + 50 ÷ 100) = $60.00, with a profit of $20.00 per unit.
FAQs
Why is markup not the same as margin?
Markup divides by cost, margin divides by price, so the percentages differ.
Can I work backwards from a price?
Yes — margin on a price is profit divided by that price.
Should markup cover overheads?
Yes, price must cover both direct cost and overheads plus profit.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
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