Markup Calculator
Enter your cost and markup percentage to calculate the selling price, gross profit, and resulting margin.
Formula: Selling price = cost x (1 + markup percentage). Margin = gross profit / selling price.
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Enter the numbers
Calculated result
Selling price
$675.00
$500.00 cost plus $175.00 markup
Gross profit
$175.00
Before overhead, taxes, and other costs
Resulting gross margin
25.93%
Gross profit as a percentage of selling price
Formula: Selling price = cost x (1 + markup percentage). Margin = gross profit / selling price.
Use the result correctly
What the calculation means
Markup and margin are not the same percentage. A 35% markup on cost produces a lower gross margin on the selling price. Include labor, freight, waste, or overhead in the cost basis when they are part of what you must recover.
Useful for
- Price resold materials or products
- Check the margin created by a markup
- Build transparent material lines for a quote or invoice
Worked examples
Markup calculation examples
Use these examples to check the formula, then replace the figures with the real values for your transaction.
| Scenario | Input | Calculated result |
|---|---|---|
| Scenario 35% markup | Input $500 cost | Calculated result $675 price · 25.93% margin |
| Scenario 50% markup | Input $80 cost | Calculated result $120 price · 33.33% margin |
| Scenario 100% markup | Input $40 cost | Calculated result $80 price · 50% margin |
Frequently asked questions
What is the difference between markup and margin?
Markup compares profit to cost. Margin compares profit to selling price, so the percentages are different for the same transaction.
Does cost include labor and overhead?
Use the cost basis appropriate for your pricing decision. If labor, freight, waste, or overhead must be recovered, include or account for them.
Is markup shown separately on an invoice?
Usually the customer sees the selling price, not your internal cost and markup, unless the agreement uses cost-plus billing.
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