Markup calculator

How to calculate it

Total cost = base cost + extra costs. Price = total cost × (1 + markup ÷ 100). Margin = (price − total cost) ÷ price × 100.

Worked example

With a $40 base cost, $5 of extra costs, and a 60% markup, the calculated price is $72 and profit is $27. The margin is 37.5%.

Results are estimates. Check your inputs and account for any costs not included before making financial decisions.

Which cost should you mark up?

Use the cost of one sale, including any directly attributable costs you want to recover. The extra-cost field is an amount, not a percentage. If your payment processor charges a percentage of the final price, use the selling-price-after-fees calculator instead.

Why 50% markup is not 50% margin

With a total cost of 40, a 50% markup adds 20 and gives a selling price of 60. The profit is one third of the selling price, so the margin is 33.33%. To get a 50% margin, the same item would need a price of 80.

What a suggested price cannot tell you

A formula cannot establish what customers will pay. Compare the result with actual demand, competitor offers and your capacity. Markup does not automatically cover rent, unsold stock or tax. Pin a result and compare the effect of a more realistic cost estimate.

Planning estimate only. Check all costs, tax treatment and your actual circumstances. Calculation and rounding notes.