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Selling Price
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How this calculator works
Markup is a percentage added on top of your cost. To calculate selling price, first work out the profit amount, then add that profit to the original cost.
Formula: selling price = cost + ((markup ÷ 100) × cost)
This means markup is based on cost, not on the final selling price. That is why markup and margin are related, but not identical.
Example
If your cost is $40 and you want a 25% markup:
(25 ÷ 100) × 40 = 10
Add the $10 profit to the $40 cost:
40 + 10 = 50
So your selling price should be $50.
Common uses
- Setting retail prices for products
- Quoting service packages with a target profit
- Comparing wholesale cost to shelf price
- Planning profit goals for ecommerce or small business sales
Frequently asked questions
What is markup?
Markup is the percentage you add to your cost to decide your selling price.
Markup is the percentage you add to your cost to decide your selling price.
What is the difference between markup and margin?
Markup is calculated from cost. Margin is calculated from revenue or selling price.
Markup is calculated from cost. Margin is calculated from revenue or selling price.
Can I use this calculator for products and services?
Yes. It works for physical goods, freelance work, agency pricing, and many other pricing decisions.
Yes. It works for physical goods, freelance work, agency pricing, and many other pricing decisions.