Calculate selling price from cost and desired markup percentage, with margin vs markup comparison and quick reference tables.
The amount you pay to produce or purchase the product
Select your calculation mode: "Cost to Selling Price" to calculate the final price from your cost and desired markup, or "Selling Price to Cost" to reverse-calculate the cost from a known price and markup.
Enter the cost price — this is the amount you pay to produce or purchase the product, including materials, direct labor, and manufacturing overhead.
Enter your desired markup percentage. This is the percentage added ON TOP of your cost to determine the selling price. For example, a 50% markup on a $100 cost gives a $150 selling price.
Click "Calculate" to see your selling price, gross profit per unit, and the equivalent gross margin percentage.
Use the quick reference table below the results to compare common markup rates and their corresponding margin percentages.
Markup is the amount added to the cost price of a product to arrive at the selling price. It is always expressed as a percentage of the cost, not the selling price. For example, if a product costs $40 and you apply a 50% markup, the selling price is $40 × (1 + 0.50) = $60. Your gross profit per unit is $20. The equivalent gross margin is 33.3% ($20 / $60). This distinction from margin is crucial: markup is calculated on cost, while margin is calculated on revenue. As markup increases, the gap between markup % and margin % grows wider. A 100% markup equals a 50% margin, and a 300% markup equals a 75% margin.
A clothing retailer purchases a shirt for $25 and applies a 60% markup. Selling Price = $25 × 1.60 = $40. Gross Profit = $40 - $25 = $15 per shirt. Gross Margin = ($15 / $40) × 100 = 37.5%. Note that while the markup is 60%, the margin is only 37.5% because margin is calculated on the higher selling price.
An electronics retailer buys a speaker at wholesale for $200 and applies a 25% markup. Selling Price = $200 × 1.25 = $250. Gross Profit = $50 per unit. Gross Margin = ($50 / $250) × 100 = 20%. The 25% markup translates to a 20% gross margin, leaving room for operating expenses but requiring volume to cover fixed costs.
A restaurant's food cost for a pasta dish is $8 (ingredients only). The restaurant applies a 300% markup to cover labor, rent, and other expenses. Selling Price = $8 × 4.00 = $32. Gross Profit = $24 per dish. Gross Margin = ($24 / $32) × 100 = 75%. While this seems high, restaurants typically have high operating expenses (rent, labor, utilities) that consume most of this gross profit.
Find answers to the most common questions about markup calculator.
