How to use the markup calculator
- Enter your cost — what you paid or what it costs to make.
- Enter the markup percentage you want to add.
- Read the selling price, the markup amount and your margin.
Worked example
Your cost is $100 and you want a 50% markup. The selling price is $150, the markup amount is $50, and your margin is 33.33%. Markup is against cost; margin is against the selling price — which is why 50% markup is a 33.33% margin.
The math
selling price = cost x (1 + markup / 100)
markup amount = selling price - cost
margin = markup / (100 + markup) x 100
A 50% markup means you add half the cost. Because margin is measured against the final price, it comes out lower than the markup.