MultiConvers

Markup Calculator

Add a chosen percent onto cost to get the extra and the selling price — markup is of cost, never of the ticket you hope to charge.

How to use

  1. Enter what the item costs you (wholesale, parts, time — whatever you treat as cost).
  2. Enter the markup percent. 25 means 25% of cost, not 25% of the selling price.
  3. Read the markup amount and the selling price.
  4. Open the margin calculator when you already have both prices and want the two percents compared.

How it works

Markup is a percent of cost. 25% on an 80 cost is 20, so the selling price is 100. The profit is 20 either way. Call that 20 a “25% margin” and you are wrong: 20 is 20% of the 100 selling price. The same pounds, two denominators.

Shops that say “we work on 50% markup” mean they add half of cost. Cost 40 becomes sell 60. The margin on that ticket is 20 ÷ 60 ≈ 33.3%, not 50%. Pricing software that treats the words as synonyms will under-price or over-price by that gap.

A 100% markup doubles cost. A 0% markup is break-even before overhead. The arithmetic allows any percent, including negative (a planned loss).

This is not a discount. A discount comes off a list price you already printed. Markup builds the list (or the street price) from cost. It is also not percentage change: you are not comparing two observed prices; you are applying a policy.

VAT and sales tax sit on top of the selling price in some jurisdictions. This page does not add tax. If your “cost” already includes inbound tax, say so to yourself — the formula does not know.

Formula

Markup amount = cost × (markup % ÷ 100)
Selling price = cost + markup amount

Worked examples

  • 25% markup on 80

    cost 80, markup 25% → markup 20, selling price 100

  • 50% markup on 40

    cost 40, markup 50% → markup 20, selling price 60

Useful notes

  • Markup = percent of cost. Margin = percent of selling price.
  • 50% markup is not a 50% margin.
  • Tax is not applied.

FAQ

How do I calculate markup?

Multiply cost by the markup percent as a decimal, then add that amount to cost. 25% of 80 is 20, selling price 100.

Is markup the same as margin?

No. Markup is based on cost; margin is based on selling price. 25% markup on 80 is a 20% margin on 100.

Can markup be more than 100%?

Yes. A 100% markup doubles the cost. The arithmetic is defined for any percent, including zero.

What selling price is a 40% markup on 25?

Markup 10, selling price 35. The margin on 35 is about 28.57%.

I have cost and selling price already. Which page?

The margin calculator. It reports both percents from the two prices. This page starts from cost and a chosen markup.

Guides

Related tools

See all Math tools.