Markup Calculator
Calculate selling price from cost and desired markup percentage. See gross margin comparison.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
Revenue
$75.00
Profit
$25.00
Gross Margin
33.3%
Calculation Details
| Cost | $50.00 |
| Markup (50%) | $25.00 |
| Selling Price | $75.00 |
| Gross Margin % | 33.33% |
Comparison at Different Markups
| 25% markup | $62.50 (profit: $12.50, margin: 20.0%) |
| 50% markup | $75.00 (profit: $25.00, margin: 33.3%) |
| 100% markup | $100.00 (profit: $50.00, margin: 50.0%) |
| 200% markup | $150.00 (profit: $100.00, margin: 66.7%) |
Use the Markup Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Setting the right price comes down to your cost and the profit margin you want from it. Working through a few markup percentages side by side shows how each one moves your gross margin, so you can land on the figure that meets your financial goals.
The core formula is direct: Selling Price = Cost × (1 + Markup Percentage as a Decimal). From there, gross margin works out to (Selling Price - Cost) / Selling Price * 100, and the results table repeats the calculation at 25%, 50%, 100% and 200% markups. Building the price this way applies your markup to cost rather than to the selling price, a distinction that often gets blurred and quietly produces thinner profits than expected. The Price → Cost mode runs the formula in reverse, Cost = Selling Price ÷ (1 + markup), to find the most you can pay for an item that has to sell at a set price.
Markup and gross margin are separate measures, and conflating them is the usual source of trouble. Your desired markup percentage should reflect the profit you want on top of cost, not a slice of the final selling price. Build that cost figure from every direct input as well, materials, labor, and any direct overhead that the product or service carries.
Example: Pricing a New Smartwatch Model
- 1 A retailer's direct cost to acquire and prepare each smartwatch for sale is $180, and it wants a 35% markup on that cost to cover overhead and profit.
- 2 Selling price = $180 × (1 + 0.35) = $180 × 1.35 = $243.00. The markup in dollars is $243.00 − $180 = $63.00.
- 3 Gross margin = $63.00 / $243.00 × 100 = 25.93%. A 35% markup is not a 35% margin: pricing at $180 / (1 − 0.35) = $276.92 would give a 35% margin, which is a 53.85% markup.
- 4 The comparison table shows the same watch at a 25% markup ($225.00, 20.0% margin), 50% ($270.00, 33.3%), 100% ($360.00, 50.0%) and 200% ($540.00, 66.7%).
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
What is the difference between markup and margin?
How do I calculate markup percentage?
What is the standard markup for retail?
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