Markup Calculator
Set profitable selling prices based on item costs and markup percentages.
Gross Profit Earned: $18
Markup parameters
Pricing Strategy
Markups define the increase in price over the baseline cost of an item. Adding a 35% markup to an item costing $50 adds $18 in gross profit, resulting in a selling price of $68.
Formula: Selling Price = Cost × (1 + Markup% / 100)
Markup Pricing Mechanics & Formulas
Understanding how to price products is essential for sustaining a profitable business. The two key concepts in product pricing are markup and gross profit margin.
How to Calculate Markup
Markup represents the percentage of profit relative to the product's cost of goods sold (COGS). The formula is:
Frequently Asked Questions About Markup
Does this calculate both markup and profit?
Yes. Our free calculator computes the exact selling price, absolute profit margins, and gross margins based on your product's initial unit cost and desired markup rate.