Markup Calculator
Calculate the markup on a product or service instantly. Enter your cost price and selling price to find your markup amount, markup percentage, profit and profit margin.
How to Use
Select your preferred currency.
Enter the cost price of the product or service.
Enter the selling price.
Click Calculate Markup.
View your markup amount, markup percentage, profit and profit margin.
Markup Calculator
Enter your cost price and selling price below to calculate your markup and profit.
What Do These Results Mean?
Profit
The amount remaining after subtracting the cost price from the selling price.
Markup Amount
The amount added to the cost price to arrive at the selling price.
Markup Percentage
The markup amount expressed as a percentage of the cost price. It shows how much the selling price has been increased above the original cost.
Profit Margin
The profit expressed as a percentage of the selling price. It shows what percentage of the selling price represents profit.
And this distinction is important:
Markup % is based on COST.
Profit Margin % is based on SELLING PRICE.
That's why our example gives 66.67% markup but only 40% profit margin even though the monetary profit is £40 in both cases.
Example Calculation
This example demonstrates how the Markup Calculator works using sample figures. Enter your own cost price and selling price to calculate markup, profit, and profit margin.
Example
Suppose a product costs £60 and is sold for £100.
Business Details
Cost Price: £60
Selling Price: £100
Estimated Results
Profit: £40.00
Markup Amount: £40.00
Markup Percentage: 66.67%
Profit Margin: 40.00%
Calculation Formula
How is markup calculated?
Our Markup Calculator uses the cost price and selling price to calculate the profit, markup percentage, and profit margin.
Profit / Markup Amount Formula
Profit = Selling Price − Cost Price
Markup Amount = Selling Price − Cost Price
Markup Percentage Formula
Markup Percentage = (Profit ÷ Cost Price) × 100
Profit Margin Formula
Profit Margin = (Profit ÷ Selling Price) × 100
Explanation
The product generates a £40 profit because the selling price is £40 higher than the cost price.
The markup percentage is 66.67% because the £40 markup is measured against the £60 cost price.
The profit margin is 40.00% because the £40 profit is measured against the £100 selling price.
This example shows why markup and profit margin are different percentages, even though they are based on the same £40 profit.
What each term means
Cost Price
The amount you paid or spent to purchase or produce the product or service.
Selling Price
The amount you charge the customer for the product or service.
Profit
The difference between the selling price and the cost price.
Markup Percentage
The profit expressed as a percentage of the cost price.
Profit Margin
The profit expressed as a percentage of the selling price.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost of a product or service to determine its selling price. Markup percentage is calculated based on the cost price.
What is the difference between markup and profit margin?
Markup measures profit as a percentage of the cost price, while profit margin measures profit as a percentage of the selling price. This is why the two percentages can be different even when the profit amount is the same.
What is a good markup percentage?
There is no single markup percentage that is suitable for every business. An appropriate markup depends on factors such as your industry, costs, competition, pricing strategy, and desired profit margin.
Can I use this Markup Calculator for any business?
Yes. The calculator can be used for products or services where you know the cost price and selling price. It can be useful for retailers, wholesalers, e-commerce sellers, freelancers, and other businesses.
Disclaimer
The results provided by this Markup Calculator are for informational and educational purposes only. They are estimates based on the information you enter and should not be considered financial, accounting, tax, legal, or professional advice.
Actual costs, selling prices, profits, margins, and business results may vary due to expenses, fees, taxes, discounts, market conditions, and other factors not included in this calculator.
Always consider your individual business circumstances and seek advice from a qualified professional where appropriate before making financial, pricing, or business decisions.