Reckonary / Finance / Markup calculator
Selling price
Markup is the amount you add to what something costs you to get the price you sell it for. Type in your cost, pick a markup percentage, and this tool shows the selling price along with the profit you keep on each unit.
The math is short: selling price equals cost times one plus the markup percentage. A $50 item with a 40% markup sells for $70, and the $20 difference is your profit per unit. Raise the markup and both the price and the profit go up; the cost stays the same.
People mix these up, and it costs them money. Markup is profit as a share of the cost. Margin is profit as a share of the selling price. That same $50 item sold for $70 has a 40% markup but only a 28.6% margin, because $20 is 40% of the $50 cost but only 28.6% of the $70 price. Markup is always the larger number.
Pick a markup that covers more than the item itself. Your price also has to carry rent, shipping, returns, and the hours you put in. Many retailers start near a 50% markup and adjust by category, then check it against what nearby sellers charge.
How do I work out the markup if I already know the cost and price?
Subtract the cost from the price to get your profit, divide that by the cost, then multiply by 100. A $60 item that cost $40 has $20 of profit, and $20 divided by $40 is a 50% markup.
What markup gives me a 50% margin?
A 100% markup. To hit any target margin, divide the margin by one minus the margin: 50% becomes 0.5 divided by 0.5, which is 1.0, or a 100% markup. A 33% margin needs about a 50% markup.
Should I mark up based on cost or on the final price?
Markup is always figured on cost, which makes it easy to set from a supplier invoice. If you care about the share of each sale you keep, look at margin instead, since that is based on the selling price.
Does this include sales tax?
No. The selling price here is before any sales tax or VAT. Add those on top at checkout, since tax is collected for the government and is not part of your profit.
Last reviewed June 2026. This tool is for education, not financial advice.