Markup Calculator
Work out the selling price from your cost and markup percentage, or find the markup on a price you already charge. Markup is profit as a percentage of the cost.
The markup formula
Selling Price = Cost × (1 + Markup ÷ 100)
- Divide the markup by 100 and add 1 to build a multiplier — a 25% markup becomes 1.25.
- Multiply the cost by that multiplier to get the selling price. The profit is Selling Price − Cost.
- To find the markup on a price you already charge, Markup = (Selling Price − Cost) ÷ Cost × 100.
How to use this calculator
- Pick “Cost + markup %” to set a price, or “Cost + price” to find the markup.
- Enter your figures — for example, a £40 cost with a 25% markup.
- Selling price, profit and markup update instantly.
Worked examples
Setting a price with a markup
A £40 cost with a 25% markup. Multiplier = 1 + 25 ÷ 100 = 1.25. Selling price = £40 × 1.25 = £50. Profit = £50 − £40 = £10.
Finding the markup on an existing price
You sell at £50 with a £40 cost. Profit = £10. Markup = 10 ÷ 40 × 100 = 25%. The equivalent margin is 10 ÷ 50 × 100 = 20%.
A 50% markup
A £20 cost with a 50% markup. Multiplier = 1.5. Selling price = £20 × 1.5 = £30. Profit = £10. The equivalent margin is 10 ÷ 30 × 100 = 33.3%.
Markup for a target margin
You want a 20% margin. The matching markup = 20 ÷ (1 − 20 ÷ 100) = 20 ÷ 0.8 = 25%. So a 25% markup and a 20% margin describe the same profit.
Keystone pricing (100% markup)
A retailer doubles a £25 cost for a 100% markup. Selling price = £25 × 2 = £50. Profit = £25. The equivalent margin is 25 ÷ 50 × 100 = 50%.
Markup, margin and profit
These terms describe profit from different angles. Here is the difference, in plain English.
- Markup
- Profit as a percentage of the cost. It answers “how much am I adding on top of what it cost me?” A £10 profit on a £40 cost is a 25% markup.
- Margin
- Profit as a percentage of the selling price. The same £10 profit on a £50 sale is a 20% margin. Use the profit margin calculator to work it out.
- Profit
- The money amount between cost and selling price, in pounds. Markup and margin are simply that profit expressed as a percentage of different bases.