Markup Calculator

Calculate profit and the percentage added to cost.

Currency changes the display only. No exchange-rate conversion is applied.

Results

Markup

42.86%

Profit: 30 USD $
Cost: 70 USD $
Selling price: 100 USD $

Use a consistent cost basis. Fees, taxes, discounts and overhead affect the result only if included in your inputs. Changing the currency label does not apply an exchange rate.

Formula · How it works

Formula

Profit = Selling price − Cost; Markup (%) = Profit / Cost × 100

Profit = selling price − cost. Markup (%) = profit / cost × 100. Markup uses cost as its denominator; margin uses selling price. The same sale therefore usually has different markup and margin percentages.

Worked example

With a cost of 70 and a selling price of 100, profit is 30 and markup is approximately 42.857%. The margin for this sale is 30%. A selling price equal to cost gives zero profit and a 0% markup.

How it works

Markup expresses the amount added to cost as a percentage of that cost. A 25% markup on a cost of 80 adds 20 and gives a selling price of 100; the margin on that sale is 20%.

Common questions

What is markup?

Markup is the difference between selling price and cost, expressed as a percentage of cost. It shows how much has been added to the entered cost.

How do I calculate markup from cost and selling price?

Subtract cost from selling price, divide by cost and multiply by 100. With cost 70 and selling price 100, the markup is approximately 42.857%.

What is the difference between markup and margin?

Markup is based on cost; margin is based on selling price. A 25% markup on cost 80 gives price 100 and profit 20, which is a 20% margin.

Can markup be negative?

Yes. A selling price below cost produces a negative markup. A zero selling price is allowed and gives a −100% markup because the entire entered cost is a loss.

Why must cost be greater than zero?

Markup divides profit by cost. When cost is zero, the percentage is undefined, so use a positive cost. The profit margin calculator accepts zero cost when selling price is positive.