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Markup vs. Gross Margin
Markup is calculated on cost. Gross margin is calculated on selling price. They are not the same number.
Formulas Used
Selling Price = Cost × (1 + Markup% / 100)
Markup% = (Profit / Cost) × 100
Gross Margin% = (Profit / Selling Price) × 100
Profit = Selling Price − Cost
The markup calculator helps business owners, retailers, and freelancers instantly convert cost into a profitable selling price. Enter your buy price and a markup percentage to see the exact selling price, profit amount, and gross margin in one click. You can also reverse-calculate — work backward from a target selling price or desired gross margin — so you always know exactly where your numbers stand.
Markup is the profit expressed as a percentage of cost. Gross margin is the same profit expressed as a percentage of the selling price. A 40% markup on a $100 item gives a $140 selling price and a 28.57% gross margin — they refer to the same profit but use a different denominator, so they are never the same number (except at 0%).
Selling Price = Cost × (1 + Markup% ÷ 100). For example, a $50 cost with a 60% markup gives $50 × 1.60 = $80 selling price.
Markup% = ((Selling Price − Cost) ÷ Cost) × 100. If you paid $50 and sell for $80, the markup is ($30 ÷ $50) × 100 = 60%.
Yes. Use the 'By Margin %' mode. The formula is Selling Price = Cost ÷ (1 − Margin% ÷ 100). A 40% target margin on a $60 cost yields $60 ÷ 0.60 = $100 selling price.