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Business calculator

Markup Calculator

Calculate markup, margin, gross profit, and selling price from cost and price.

Markup50%
Gross margin33.33%
Gross profit per unit$20.00

FormulaMarkup % = (Selling Price − Cost) ÷ Cost × 100
Calculation steps
  1. $60.00 − $40.00 = $20.00
  2. $20.00 ÷ $40.00 × 100 = 50% markup
  3. $20.00 ÷ $60.00 × 100 = 33.33% margin

Compare

Scenario comparison

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Scenario A

Markup
50%
Gross margin
33.33%
Gross profit per unit
$20.00

Scenario B

Markup
75%
Gross margin
42.86%
Gross profit per unit
$30.00

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How it works

How to use this markup calculator

  1. Enter the unit cost.
  2. Enter the selling price.
  3. Compare markup, gross margin, and gross profit.

Formula

The calculation formula

Markup % = (Selling Price − Cost) ÷ Cost × 100
01

Subtract cost from selling price to find gross profit.

02

Divide profit by cost for markup.

03

Divide profit by selling price for gross margin.

Worked examples

Example calculations

Retail markup

A $40 item sold for $60 earns $20 gross profit, a 50% markup, and a 33.33% margin.

Zero cost is invalid

Markup divides by cost, so unit cost must be greater than zero.

When to use it

Common use cases

  • Set a product selling price
  • Compare markup and margin
  • Check gross profit per unit

Limits

Assumptions and limits

  • Markup divides profit by cost.
  • Margin divides profit by selling price.
  • Overhead, tax, and shipping are not included.

Questions

Frequently asked questions

Are markup and margin the same?

No. Markup divides profit by cost, while margin divides profit by selling price.

Does gross profit include overhead?

No. This result only subtracts the entered unit cost. Operating expenses, tax, shipping, and other costs may still apply.

Sources

Sources and review