Markup Calculator

Use this markup calculator to find selling price, markup, cost, gross profit, and margin. Switch between markup and margin modes for forward or reverse pricing.

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Formulas & Definitions

Note: Values are currency-neutral (any currency works). We use $ for display convenience.

Markup vs Margin: Markup is the profit as a percentage of cost. Margin is the profit as a percentage of the selling price.

  • Markup % = ((Selling Price – Cost) / Cost) * 100
  • Margin % = ((Selling Price – Cost) / Selling Price) * 100
  • Selling Price = Cost * (1 + (Markup % / 100))
  • Selling Price (from Margin) = Cost / (1 – (Margin % / 100))
  • Cost (from Markup) = Selling Price / (1 + (Markup % / 100))
  • Cost (from Margin) = Selling Price * (1 – (Margin % / 100))
By: AxisCalc Published: March 29, 2026 Reviewed by: Julian Thorne

This markup calculator helps you quickly find the right selling price based on your cost and desired markup, or work backward to find your cost from a known selling price. It automatically handles the math for both markup and gross margin, showing you exactly how much gross profit you make on every item without any manual guesswork.

Whether you need a simple price markup calculator to set retail prices or a comprehensive markup vs margin calculator to understand your true profitability, this tool supports every calculation path. You can easily switch between calculating markup percentages, finding selling prices from target margins, or reverse-calculating your original costs based on the exact numbers you have.

Markup Calculator

At its core, markup is the percentage of profit you add to the cost of a product to determine its final selling price. This calculator goes beyond simple percentage math by also displaying your gross profit and gross margin for every calculation you run.

You can use any currency you prefer—while the interface displays a standard symbol for convenience, the underlying math works exactly the same for all global currencies. The tool is designed to be fully flexible, supporting both forward calculations to set prices and reverse calculations to figure out your baseline costs.

Markup Formula

Understanding the math behind your pricing builds confidence in your numbers. Here is how the calculator determines each value based on what you want to solve for:

What you want to calculateFormula
Markup %$$\frac{\text{Selling Price} – \text{Cost}}{\text{Cost}} \times 100$$
Gross Margin %$$\frac{\text{Selling Price} – \text{Cost}}{\text{Selling Price}} \times 100$$
Gross Profit$$\text{Selling Price} – \text{Cost}$$
Selling Price from Markup$$\text{Cost} \times (1 + \frac{\text{Markup}}{100})$$
Selling Price from Margin$$\frac{\text{Cost}}{1 – \frac{\text{Margin}}{100}}$$
Cost from Markup$$\frac{\text{Selling Price}}{1 + \frac{\text{Markup}}{100}}$$
Cost from Margin$$\text{Selling Price} \times (1 – \frac{\text{Margin}}{100})$$

Calculate Selling Price from Cost and Markup

This is the most common way to set retail prices. You enter your unit cost and your target markup percentage, and the tool returns the exact selling price to charge, alongside the gross profit and gross margin you will earn.

The formula used is: $$\text{Selling Price} = \text{Cost} \times (1 + \frac{\text{Markup}}{100})$$

CostMarkupSelling PriceGross ProfitGross Margin
5040%702028.57%
10025%1252520.00%
8060%1284837.50%

Calculate Markup from Cost and Selling Price

If you already know how much an item costs and what you are charging for it, this mode acts as a markup percentage calculator. You enter the cost and the selling price, and the tool returns your gross profit, your markup percentage, and your gross margin percentage.

The formula used is: $$\text{Markup} = \frac{\text{Selling Price} – \text{Cost}}{\text{Cost}} \times 100$$

CostSelling PriceGross ProfitMarkupGross Margin
50702040.00%28.57%
801002025.00%20.00%
1201806050.00%33.33%

Reverse Markup Calculator: Calculate Cost from Selling Price and Markup

Sometimes you know the retail price and the standard markup applied, but you need to find the original cost. You enter the selling price and the known markup percentage, and the tool calculates the exact unit cost, gross profit, and gross margin.

The reverse formula used is: $$\text{Cost} = \frac{\text{Selling Price}}{1 + \frac{\text{Markup}}{100}}$$

Note: The markup value must be greater than -100% for the formula to return a mathematically valid result.

Selling PriceMarkupCostGross ProfitGross Margin
7040%502028.57%
12525%1002520.00%
9012.5%801011.11%

Markup vs Margin Calculator

It is easy to mix up these two pricing metrics, but they measure profit differently. Markup is the percentage of profit based purely on your cost. Margin is the percentage of profit based on your final selling price. Because the starting points are different, the exact same profit numbers will always produce a higher markup percentage than margin percentage.

CostSelling PriceProfitMarkupMargin
50702040.00%28.57%
1001505050.00%33.33%
2002606030.00%23.08%

Calculate Selling Price from Cost and Margin

If your business targets a specific profit margin rather than a markup, use this mode. You enter your unit cost and your target gross margin percentage, and the tool calculates the necessary selling price, the gross profit, and the equivalent markup.

The formula used is: $$\text{Selling Price} = \frac{\text{Cost}}{1 – \frac{\text{Margin}}{100}}$$

Note: Your target gross margin must be less than 100%, as a 100% margin implies the item cost nothing to produce.

CostMarginSelling PriceGross ProfitMarkup
5028.5%69.9319.9339.86%
10020%125.0025.0025.00%
8040%133.3353.3366.67%

Calculate Cost from Selling Price and Margin

This is the second reverse-support mode. You enter the final selling price and the gross margin percentage, and the tool reveals the maximum allowable unit cost to maintain that margin, along with the gross profit and markup.

The formula used is: $$\text{Cost} = \text{Selling Price} \times (1 – \frac{\text{Margin}}{100})$$

Note: The gross margin entered must be less than 100% to calculate a valid cost.

Selling PriceMarginCostGross ProfitMarkup
7028.5%50.0519.9539.86%
12520%100.0025.0025.00%
20035%130.0070.0053.85%

Markup Conversion Table

If you frequently need to translate a standard markup into its equivalent gross margin, use this quick reference. It shows the direct relationship between the two metrics when applied to the same cost and selling price.

MarkupMargin
10%9.09%
20%16.67%
25%20.00%
30%23.08%
40%28.57%
50%33.33%
60%37.50%
75%42.86%
100%50.00%

Markup Calculator Examples

Depending on the exact numbers you have on hand, choose the calculator mode that matches your scenario to get the right answers instantly.

ScenarioKnown valuesUse this calculator modeMain result
Set a selling price with target markupCost + markupCalculate Price (from Cost & Markup)Selling price
Find markup on an existing priceCost + selling priceCalculate Markup (from Cost & Price)Markup %
Back into cost from a marked-up priceSelling price + markupReverse: Calculate Cost (from Price & Markup)Cost
Price from target gross marginCost + marginCalculate Price (from Cost & Margin)Selling price
Back into cost from target marginSelling price + marginReverse: Calculate Cost (from Price & Margin)Cost

Markup Calculator Inputs, Outputs, and Limits

This tool applies strict mathematical logic to ensure your pricing data is accurate. Here is how the calculator processes your inputs and limits invalid entries.

ItemWhat the calculator uses
Inputs by modeCost, selling price, markup %, gross margin %
Outputs by modeSelling price, cost, gross profit, markup %, gross margin %
Currency handlingCurrency-neutral math; displayed currency symbol is only for convenience
Cost ruleCost must be greater than 0 where cost is required
Selling price ruleSelling price must be greater than 0 where price is required
Markup ruleMarkup must be greater than -100% where used to derive price or cost
Margin ruleGross margin must be less than 100% where used to derive price or cost
Size limitAbsolute input values above 1 trillion are rejected

Common Markup Mistakes This Calculator Helps Avoid

Pricing errors can eat into your profitability quickly. Using this calculator prevents these frequent mathematical missteps:

  • Confusing markup with margin, which leads to setting prices too low.
  • Entering the selling price into a field where the unit cost belongs.
  • Assuming the same percentage means the same thing in markup and margin formulas.
  • Attempting to use mathematically impossible values, like a margin of 100% or a markup of -100%.
  • Forgetting that applying a negative markup or a negative margin implies you are selling at a loss.

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