Markup Calculator: Convert Cost and Desired Markup into Selling Price
Markup is the most common way retailers and resellers turn cost into a selling price. A markup calculator takes the cost of the item and the desired markup percentage and returns the selling price (and the dollar markup amount). This page focuses on that calculation and its relationship to margin.
Use the free Discount & Markup Calculator to obtain selling price from any cost and markup percentage.
Markup Formulas
A step-by-step process appears on the how to calculate markup page. The critical difference between markup and margin is explained on the markup vs margin page.
Practical Example
Cost $50, markup 100 % → Markup amount $50 → Selling price $100.
The resulting margin on that sale is 50 %, not 100 %. This is why confusing the two concepts is expensive.
From Desired Margin to Required Markup
If you start from a target margin rather than a target markup, convert first:
Markup = Margin ÷ (1 − Margin)
Then apply the markup formula. The profit margin calculator page and the main tool both support this workflow.
Cluster Links
Frequently Asked Questions
How do you calculate markup?
Markup Amount = Cost × Markup %. Selling Price = Cost + Markup Amount. Or Selling Price = Cost × (1 + Markup %).
Is markup the same as margin?
No. Markup is based on cost; margin is based on selling price. See the Markup vs Margin page for a full comparison.
What is a typical retail markup?
It varies widely by category. Many retailers use markups that produce target margins after discounts and operating costs. There is no single correct percentage.
Can the Discount & Markup Calculator compute markup?
Yes. Enter cost and desired markup percentage to obtain the selling price, or enter cost and selling price to obtain the markup percentage.
How do I convert a desired margin into a markup?
Markup = Margin ÷ (1 − Margin). For example, a 40 % margin requires a markup of approximately 66.7 %.
Should markup include all costs?
Markup is usually applied to product cost (COGS). Operating expenses are typically covered by the resulting margin rather than by increasing the product-cost markup further.
Final Call to Action
Calculate selling price from cost and markup
Set the markup that produces the margin you actually need, then verify the selling price against the market.
Open the free Discount & Markup Calculator