Markup Calculator
Calculate selling prices, profit, and equivalent margin from any markup percentage. Or find the markup from a known cost and sell price.
Markup Calculator
Formula
Selling Price = Cost × (1 + Markup% ÷ 100)
Markup is profit as a percentage of the cost price. A 50% markup on a £20 cost gives a £30 selling price. Note: 50% markup ≠ 50% margin (the margin would be 33.3%).
Worked Example
Scenario: A wholesaler buys stock at £35 per unit and applies a 60% markup to set the retail price.
Selling Price = £35 × (1 + 60/100) = £35 × 1.60 = £56.00
Profit = £56 − £35 = £21.00
Gross Margin = £21 ÷ £56 = 37.5%
The 60% markup translates to a 37.5% gross margin — these are not the same figure.
Common Mistakes
- Using markup % and margin % interchangeably. A 50% markup is only a 33.3% margin. They are calculated on different bases (cost vs. sell price).
- Applying markup to an ex-VAT price but comparing to VAT-inclusive prices. Always compare like for like — work with ex-VAT prices consistently.
- Setting markup without accounting for returns or platform fees. These reduce effective margin and should be factored into your target markup.
How to Use
- 1
Choose a mode
Select "Cost + Markup %" to find the selling price. Select "Cost + Sell Price" to calculate the markup you are actually applying.
- 2
Enter the cost price
The price you pay for the product, excluding VAT.
- 3
Enter markup or sell price
Enter the markup percentage you want to apply, or the sell price to find the implied markup.
- 4
Review all figures
The result shows sell price, profit, markup, and equivalent gross margin together.