Markup Calculator
Markup indicates the percentage added to the cost of a product to determine its selling price. Retailers and craftspeople use markup to ensure operating expenses and desired profits are covered.
Calculated Result
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Notice: Estimates provided for informational purposes only.
Formula & Mechanics
Markup (%) = ((Selling Price - Cost) / Cost) × 100
Profit is divided by the initial cost basis and multiplied by 100 to yield the markup percentage.
Worked Step-by-Step Example
Scenario: You buy an item for $40 and sell it for $60.
- Profit: $60 - $40 = $20
- Divide by Cost: $20 ÷ $40 = 0.50
- Multiply by 100: 0.50 × 100 = 50%
The markup is 50%, producing a 33.3% profit margin.
Frequently Asked Questions
Can markup exceed 100%?
Yes. If you double your cost, the markup is 100%. If you sell a $10 item for $40, your markup is 300%.
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