Markup Calculator

Find a price by marking up your cost.

How the Math Works

The Markup Calculator uses a straightforward percentage increase formula to determine your selling price. When you multiply your cost by (1 + markup/100), you're essentially calculating the original cost plus the additional percentage you want to add as profit. For example, if your item costs $50 and you want a 20% markup, the calculation becomes $50 × (1 + 20/100) = $50 × 1.2 = $60. This formula ensures you maintain consistent profit margins across different cost prices.

Practical Applications

To use this calculator effectively for business pricing, first determine your total cost per item including materials, labor, and overhead. Then decide on your desired profit margin as a percentage. Plug these values into the formula to calculate your final selling price. This is particularly useful when setting prices for products in retail, wholesale, or e-commerce environments where maintaining consistent markup percentages across inventory is crucial for profitability analysis.

Day-to-Day Use

In everyday situations, this calculation helps you make informed pricing decisions whether you're selling items at a garage sale, setting prices for handmade crafts, or determining fair rental rates. Understanding markup also helps you evaluate whether sales prices are fair and whether you're making reasonable profit when buying and reselling items. This knowledge empowers better financial decision-making in both personal and small business contexts, ensuring you don't underprice products or lose potential customers by pricing too high.

Worked example

$50 cost + 60% markup → $80.

FAQ