BizFormula

Pricing & Profit

Markup Calculator

Calculate profit, markup, and profit margin from your cost and selling price—even when a sale produces a loss.

Enter your values

The total cost of one product or service.

$

The amount charged to your customer.

$

Results

Markup

—

Enter cost and selling price to calculate markup.

Profit

—

Selling price less cost.

Profit margin

—

Profit as a percentage of selling price.

Results are estimates based on the values entered and are provided for general planning.

Method

How to calculate markup

Markup compares profit with cost, while profit margin compares the same profit with selling price. This calculator derives both measures from an entered cost and selling price.

Formula

Profit = Selling price − Cost
Markup = Profit ÷ Cost × 100
Profit margin = Profit ÷ Selling price × 100
Read the complete markup formula guide →

Assumptions

  • Cost and selling price refer to the same unit or service.
  • A selling price below cost is valid and produces negative profit, markup, and margin.
  • The result does not add tax, transaction fees, discounts, or costs omitted from the cost input.

The price, profit, and margin calculations retain full numeric precision. Currency and percentages display two decimals.

How to interpret the result

Positive markup means selling price exceeds cost. Negative markup means the sale is below cost. When cost is zero, markup is not applicable because division by zero is undefined.

How markup affects selling price

Markup measures the amount added to cost as a percentage of that cost. A 40% markup means adding $40 for every $100 of entered cost.

When pricing a product, include the costs you need the selling price to recover. Leaving out fulfillment, commissions, or allocated overhead can make the displayed gross profit higher than the amount the business actually retains.

Markup and margin compared

Both percentages describe gross profit, but they divide it by different amounts.

MeasureFormulaWhat it shows
MarkupGross profit ÷ Cost × 100How much profit is added relative to cost.
Profit marginGross profit ÷ Selling price × 100How much of selling price remains after the entered cost.
Selling priceCost × (1 + Markup ÷ 100)The price produced by adding the selected markup to cost.

Frequently asked questions

Subtract cost from selling price, divide the profit by cost, and multiply by 100. A $20 profit on an $80 cost is a 25% markup.

No. A 50% markup on cost produces a 33.3% margin on selling price because markup and margin use different bases.

Yes. Markup is negative when selling price is below cost. This calculator treats that loss scenario as valid rather than as an input error.

No. The result only uses the cost and selling price entered. Add taxes, marketplace fees, payment fees, discounts, or other expenses separately when they apply.

Keep calculating

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