Markup Calculator Formula

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

Use the Markup Calculator

Formulas Used

Markup Amount

markup_amount = cost * markup_percent / 100

Selling Price

selling_price = cost + markup_amount

Profit Margin

profit_margin = markup_amount / selling_price * 100

Variables

VariableDescriptionDefault
costCost(USD)50
markup_percentMarkup(%)40

How It Works

Markup vs Margin

Markup is based on cost: Selling Price = Cost × (1 + Markup%/100)

Margin is based on selling price: Margin% = Profit / Selling Price × 100

A 40% markup equals a ~28.6% profit margin.

Worked Example

A product costs $50 and you want a 40% markup.

cost = 50markup_percent = 40
  1. 01Markup = $50 × 40% = $20
  2. 02Selling price = $50 + $20 = $70
  3. 03Profit margin = $20 / $70 = 28.6%

Ready to run the numbers?

Open Markup Calculator