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About this tool
Add a markup percentage to a cost to get the selling price and profit.
The Markup Calculator applies a markup percentage to a cost to give the selling price, using price = cost x (1 + markup / 100), and reports the resulting cash profit and the gross margin that same price implies. A cost of 60 with a 40 percent markup produces a price of 84, a profit of 24 and a margin of 28.57 percent. It is for retailers, tradespeople and freelancers who price from cost upward and want to see what the margin actually works out to.
Open Markup Calculator on AltFTool — it loads instantly in your browser.
Enter the cost of your product or service in the 'Cost' field to establish the base value for your calculation
Input the desired markup percentage in the 'Markup (%)' field to determine the amount of profit you want to add to the cost
There is no calculate button to press: the Result panel recalculates as you type, showing the selling price above the caption 'selling price' with 'Profit' and 'Margin' cards beneath it, the margin given to two decimals as a percentage
You enter cost and markup, and get the selling price plus both the cash profit and the margin that price produces.
The margin figure sits next to the price, which is where people usually discover the two percentages are not the same number.
The formula holds for a 5 percent trade uplift or a 300 percent retail multiple, so the same tool covers wholesale and retail pricing.
Multiply the cost by (1 + markup percentage divided by 100). A cost of 60 with a 40 percent markup gives 60 x 1.40 = 84, and the profit is the 24 difference.
No. Markup is profit as a percentage of cost, margin is profit as a percentage of the selling price, and markup is always the larger number. A 40 percent markup equals a 28.57 percent margin, a 50 percent markup equals a 33.33 percent margin, and a 100 percent markup equals a 50 percent margin.
It varies widely by trade, so base it on what your sector and your own overheads require rather than a universal figure — keystone pricing, meaning a 100 percent markup that doubles cost, is a common retail convention but not a rule. Remember the result here is gross: rent, wages and tax still come out of it, and an accountant should confirm your net position.
Divide the margin by (100 minus the margin) and multiply by 100. To hit a 30 percent margin you need a markup of 30 / 70 x 100, which is about 42.86 percent, and you can confirm it by entering that markup here and reading the margin back.
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