Free Online Markup Calculator
Instantly calculate your selling price, profit amount, and gross margin. Ensure your business pricing is accurate, competitive, and profitable.
Calculate Your Selling Price
Enter your product’s cost price and your desired markup percentage below. The calculator will instantly reveal your optimal selling price, total profit, and gross margin.
Markup & Margin Calculator
Cost-plus pricing and profitability analysis
Pricing Results
Based on your inputs above
How to Use This Calculator
Setting the right price is critical for business survival. This tool simplifies the mathematics of cost-plus pricing.
Enter the Cost Price
Input the total amount it costs you to acquire or produce one unit of your product or service. Include materials, labour, and direct overheads.
Set Your Desired Markup
Enter the percentage you wish to add to the cost price. This represents your target profit relative to the cost of the item.
Review Selling Price & Margin
The calculator instantly displays the final selling price, the exact profit in pounds, and the gross margin percentage to help you evaluate profitability.
Markup vs Gross Margin Cheat Sheet
Because markup and margin use different base numbers, a 50% markup does not equal a 50% margin. Use this table to translate between the two.
| Markup Percentage | Equivalent Gross Margin | Price Multiplier | Common Use Case |
|---|---|---|---|
| 20% | 16.67% | 1.20x | High-volume, low-margin retail (e.g., groceries) |
| 33.3% | 25.00% | 1.33x | Standard wholesale distribution |
| 50% | 33.33% | 1.50x | General retail, clothing, and accessories |
| 100% (Keystone) | 50.00% | 2.00x | Specialty retail, boutiques, hardware |
| 200% | 66.67% | 3.00x | Restaurants, cafes, and food service |
| 300%+ | 75.00%+ | 4.00x+ | Software, consulting, and luxury goods |
Markup Calculator FAQ
Answers to the most frequently asked questions about pricing, markup, and profit margins.
Markup is the percentage added to the cost price to determine the selling price (Profit ÷ Cost). Profit margin is the percentage of the selling price that is profit (Profit ÷ Selling Price). Because the denominator is different, the margin percentage is always lower than the markup percentage for the same transaction.
To calculate the selling price, multiply the cost price by the markup percentage (expressed as a decimal) to find the profit amount, then add that profit to the original cost. Formula: Selling Price = Cost + (Cost × (Markup / 100)).
A good markup percentage varies widely by industry. Retail goods often use a 50% to 100% markup (known as ‘keystone’ pricing), while service-based businesses or restaurants may use 200% to 300% to adequately cover overheads, labour, and operational costs.
Yes, this markup calculator is 100% free to use with no limits. All calculations are performed locally in your web browser, ensuring your business pricing data remains completely private and is never stored or transmitted.