Example 1
If cost is $80 and selling price is $100, markup amount is $20 and markup percentage is 25%.
Quick Tool Labs
Markup Calculator
Use this markup calculator to estimate markup amount, markup percentage, and gross margin from cost and selling price. It is useful for pricing checks, product planning, and quick margin comparisons.
Calculator
Markup amount$0.00
Markup percentage0.00%
Gross margin0.00%
Enter cost and selling price to calculate markup.
How this markup calculator works
This calculator subtracts cost from selling price to find the markup amount. It then divides that markup amount by cost to find markup percentage and divides it by selling price to find gross margin.
Markup % = ((selling price - cost) / cost) x 100
Markup helps with pricing decisions because it shows how far above cost you are charging. Margin is shown too because it is a common companion metric for comparing product profitability.
Examples
Example 2
If cost is $50 and selling price is $75, markup amount is $25 and gross margin is about 33.33%.
Example 3
If selling price drops below cost, the result becomes a negative markup, which signals a loss on the sale.
Frequently asked questions
What is markup amount?
Markup amount is the difference between selling price and cost.
Is markup the same as margin?
No. Markup compares profit to cost, while margin compares profit to selling price.
Why is cost required to be greater than zero?
Markup percentage divides by cost, so cost must be greater than zero for the percentage to be defined.