Calculate selling price from cost and desired markup percentage, or find the markup percentage from cost and selling price.
Markup is the amount you add to your cost to set a selling price. Businesses use it to cover overhead, protect profit, and keep pricing consistent across products or services.
A markup calculator is helpful when you want to price inventory quickly, test different pricing strategies, or make sure your quoted price leaves enough room after costs, fees, and operating expenses.
Markup and profit margin are related, but they are not the same thing. Markup is based on cost, while margin is based on selling price. Confusing the two can lead to underpricing.
For example, if an item costs $50 and you apply a 40% markup, the selling price becomes $70. Your profit is $20, but the profit margin is $20 divided by $70, not 40%.