Plot No. 69 · Business & Work
Markup Calculator
Work out the selling price from a cost and a desired markup. It multiplies the cost by one plus the markup percentage to get the sale price, then shows the cash profit and the resulting profit margin, which is the profit as a share of that price.
Markup is measured against the cost, while the resulting margin is measured against the sale price, so the margin always comes out lower.
The link saves your inputs so you can bookmark or share this exact result.
How the markup price is worked out
The calculator solves the selling price from a cost and a target markup. It multiplies the cost by one plus the markup as a decimal, so a 150 percent markup multiplies the cost by 2.5. This is the inverse of the profit margin calculator, which starts from a price you already know.
Once it has the price, profit is the price minus the cost, and the resulting margin is that profit divided by the sale price. Because markup is measured against the smaller cost and margin against the larger price, the margin always lands below the markup.
How to use the markup calculator
- Enter the cost of the item in pounds.
- Enter the markup percentage you want to apply.
- Read off the sale price to charge, the cash profit and the resulting profit margin.
Worked examples
Standard retail markup
Inputs: Cost £40, markup 150 percent
Result: A £100 sale price, £60 profit and a 60 percent resulting margin.
Modest markup
Inputs: Cost £40, markup 25 percent
Result: A £50 sale price, £10 profit and a 20 percent resulting margin, showing the margin always trailing the markup.
Limitations and common mistakes
Edge cases and limitations
- It applies markup to a single unit cost and does not add VAT, fees or carriage on top of the price.
- A zero cost produces a zero price, since markup is a multiple of the cost rather than a fixed amount.
- It sets a gross price only, so check it still covers overheads and leaves the net profit you need.
Common mistakes
- Adding a markup percentage expecting that same number as the margin, when the margin always comes out lower.
- Applying markup to cost but forgetting to add VAT afterwards, so the shelf price is short of what you needed.
Frequently asked questions
How do I calculate a selling price from markup?
Multiply the cost by one plus the markup as a decimal. A £40 cost with a 150 percent markup is 40 times 2.5, which is a £100 sale price, giving £60 profit.
Why is the resulting margin lower than the markup?
Markup is measured against the smaller cost and margin against the larger price, so margin is always lower. A 150 percent markup on £40 lands at a £100 price, which is only a 60 percent margin.
When should I use markup instead of margin?
Use markup when you know your cost and want to set a price quickly. If you instead start from a target margin or already have a price and want to check it, the profit margin calculator works the other way round.
Related calculators
Profit Margin Calculator
Turn cost and sale price into profit, profit margin percent and markup percent.
Freelance Day Rate Calculator
Turn a target income into the day rate and hourly rate to charge, accounting for overheads and non-billable time.
Sales Commission Calculator
Work out commission earned and total pay from base salary, sales, commission rate and quota.
See all business & work calculators.