Calculate& Decide

Business calculator

Markup Calculator

This calculator measures how far a selling price is above cost, expressed as a percentage of cost.

Updated · Inputs stay in your browser

Educational estimate: This result is not financial, tax, legal, or investment advice. Check real terms and consider qualified advice for important decisions.

Enter your values

Choose the symbol used to display amounts.
Cost of one unit.
Price charged for one unit.

Your values stay on this device. Nothing is sent to Calculate & Decide unless you deliberately use your device's share feature.

What this result means

This calculator measures how far a selling price is above cost, expressed as a percentage of cost. The results panel explains the main number and the quantities that produced it, so you can check whether the estimate answers your real question.

Formula used

Markup (%) = (Selling price − Cost) ÷ Cost × 100.

Step-by-step calculation

  1. Validate every required value and reject values outside the stated field limits.
  2. Convert rates and time periods to the units required by the formula.
  3. Calculate with full JavaScript number precision; do not round intermediate values.
  4. Round only the displayed result and explain the practical meaning.

Worked example

An item costing $40 and selling for $60 earns $20 gross profit and has a 50% markup.

Assumptions and limitations

  • Cost and price refer to the same unit and tax treatment.
  • Cost includes the amounts you want recovered through pricing.
  • The output is markup, not margin.

How to use this calculator

  1. Choose a currency symbol when the tool uses money.
  2. Enter values in the units shown beside each field.
  3. Select Calculate, then read both the main result and interpretation.
  4. Change one uncertain input at a time to understand sensitivity.
  5. Use Copy result or Share only when you choose to move the result outside this page.

Common mistakes

  • Calling a 50% markup a 50% margin.
  • Ignoring overhead, shipping, payment fees, or waste.
  • Using different package quantities for cost and price.

Frequently asked questions

Can markup be negative?

Yes. A selling price below cost produces a negative markup.

What is a 100% markup?

The selling price is twice the cost.

Why is margin lower than markup for a profitable item?

They use different denominators: revenue for margin and cost for markup.

Methodology and sources

Formula definitions and edge-case behavior are documented on our Methodology page. No external data is fetched by this calculator.

See the site-wide calculation methodology and editorial standards. Formula errors can be reported through the error-reporting instructions.

Published and reviewed .