Business calculators
Markup Calculator
Measure how much a selling price sits above the item or service cost. Your inputs stay in this browser.
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What this calculator measures
Markup measures the increase from cost to selling price. It is useful when building a price from an item, subcontractor, or delivery cost.
Formula
Markup % = ((Selling Price - Cost) / Cost) x 100
Worked example
- 1An item costs $100 and sells for $150.
- 2($150 - $100) / $100 x 100 = 50% markup.
How to interpret the result
Markup describes pricing over cost, not the share of revenue retained as profit.
Common mistakes and limits
- Using revenue as the denominator, excluding costs that belong to the item, or calling a 50% markup a 50% margin.
Frequently asked questions
Can markup be negative?
Yes. Selling below cost produces negative markup.
What is a 100% markup?
The selling price is twice the cost.
Does markup equal profit?
Not necessarily; overhead and taxes may still reduce profit.