Markup Calculator

Estimate the final customer selling price, total profit dollars, and equivalent gross profit margin based on your wholesale item cost and desired markup rate.

Input Details

Item Cost Price

The wholesale cost or manufacturing expense to produce the item

Desired Markup Percentage

The percentage profit to add on top of the cost

Results

Selling Price Estimate

Calculated Selling Price

$70.00

By applying a 40% markup, you should price this item at $70.00 to generate a profit of $20.00.

Gross Profit ($)$20.00

Resulting Profit Margin (%)28.6%

Original Cost Price$50.00

The Formula

Formula Overview:

1. Profit = Cost × (Markup Percentage ÷ 100)
2. Selling Price = Cost + Profit
3. Profit Margin = (Profit ÷ Selling Price) × 100

Example Calculation

If your item wholesale cost is $50 and you want to apply a 40% markup:
Profit: $50 × 0.40 = $20 Selling Price: $50 + $20 = $70 Resulting Margin: ($20 / $70) × 100 = 28.6%

How to Use This Calculator

Enter your wholesale or manufacturing cost in the **Item Cost** field.
Enter the **Desired Markup Percentage** (e.g. 50% to double the cost, or 100% to triple the cost).
Review the recommended selling price and profit margin instantly.

When This Calculator is Useful

Use this calculator when **pricing inventory for retail**, creating quotes for physical materials, or determining service pricing strategies where you mark up subcontractor costs.

Disclaimer Note

All results are estimates based on standard business formulas and rates. Actual project costs, ROI, and rates may vary based on market conditions, specific requirements, and contract agreements.

Frequently Asked Questions

Markup is the amount added to the cost price of goods to cover overhead costs and secure a profit. It is calculated by dividing the gross profit by the item cost, and multiplying by 100. Or, to find a selling price, you multiply the cost by (1 + markup percentage / 100).

Markup is the percentage of profit added to the cost price, whereas margin is the percentage of profit relative to the final selling price. For example, if an item costs $50 and sells for $100, the markup is 100% (doubling the cost), but the margin is 50% (half of the sale price is profit).

Yes, markup can exceed 100% (and often does). If an item costs $10 to make and you sell it for $30, your markup is 200% ($20 profit / $10 cost). Profit margin, however, can never exceed 100% since profit can never be higher than the selling price itself.

Standard retail markups typically range between 50% and 100% (often called "keystone pricing" where selling price is double the wholesale cost). High-end luxury brands, cosmetics, and restaurant food items can have markups of 200% to 500% or more.