Markup Calculator: calculate markup for your business. Formula, benchmarks, and practical tips included.
Markup % = (Selling price − Cost) ÷ Cost × 100
Gross margin % = (Selling price − Cost) ÷ Selling price × 100
Selling price from markup: Price = Cost × (1 + markup%/100)
Selling price from margin: Price = Cost ÷ (1 − margin%/100)
Conversion: Margin = Markup ÷ (1 + Markup); Markup = Margin ÷ (1 − Margin) [where both are expressed as decimals]
Worked example: Cost 60, selling price 100. Markup = (100−60)/60 × 100 = 66.7%. Margin = (100−60)/100 × 100 = 40%. A business that says "we add 40% to cost" actually achieves 28.6% margin — not 40%.