Markup Calculator Formula

Understand the math behind the markup calculator. Each variable explained with a worked example.

Use the Markup Calculator

Formulas Used

Markup Percentage

markup_pct = cost > 0 ? ((selling_price - cost) / cost) * 100 : 0

Profit Margin

margin_pct = selling_price > 0 ? ((selling_price - cost) / selling_price) * 100 : 0

Profit

profit = selling_price - cost

Variables

VariableDescriptionDefault
costCost Price(USD)50
selling_priceSelling Price(USD)75

How It Works

How to Calculate Markup

Markup is the percentage added to the cost price to determine the selling price.

Formula

Markup % = [(Selling Price - Cost) / Cost] x 100

Markup vs. Margin

  • Markup is based on cost: how much you add to your cost
  • Margin is based on selling price: what percentage of the sale is profit

    • Worked Example

    You buy a product for $50 and sell it for $75.

    cost = 50selling_price = 75
    1. 01Profit = $75 - $50 = $25
    2. 02Markup = ($25 / $50) x 100 = 50%
    3. 03Margin = ($25 / $75) x 100 = 33.33%

    Ready to run the numbers?

    Open Markup Calculator