Markup Calculator

Markup is the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost, not the selling price — an important distinction from profit margin. The formula is: markup amount = cost × (markup percentage ÷ 100), and selling price = cost + markup amount, or equivalently: selling price = cost × (1 + markup percentage ÷ 100).

For example, if a product costs $80 to produce or purchase and you apply a 25% markup, the markup amount is $80 × 0.25 = $20, giving a selling price of $100. The $20 markup represents the gross profit before operating expenses. Businesses use markup to cover overhead, labor, marketing, and desired net profit on top of direct costs.

Markup and profit margin measure the same profit from different perspectives. A 25% markup on cost yields a 20% profit margin on revenue ($20 profit ÷ $100 selling price). Markup is always higher than the equivalent margin percentage because the base (cost) is smaller than the selling price. Confusing the two is one of the most common pricing errors in retail and food service.

Industry standard markups vary widely. Grocery stores might mark up 15–25%, clothing retailers 50–100%, and restaurants often use a 300% markup on food cost (often called "food cost percentage" in reverse). Jewelers and luxury goods may use even higher multiples. Understanding your cost structure and competitive landscape determines the right markup for your business.

Whether you are pricing handmade goods on Etsy, setting menu prices for a café, or determining wholesale-to-retail spreads, this calculator converts your cost and desired markup into a selling price instantly. Enter your cost and markup percentage to see the selling price and gross profit amount.