Code tool

Markup Calculator

Enter your cost and markup percentage to see the resulting selling price, profit, and gross margin.

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Markup is calculated on cost. Gross margin is profit divided by selling price; they are different percentages.

A QUICK WALKTHROUGH

How to use this tool

  1. Enter the item cost.
  2. Enter the markup percentage applied to cost.
  3. Review selling price, profit, and the separate gross margin result.

Markup and gross margin are different

Markup is profit divided by cost. Gross margin is profit divided by selling price. For a 25% markup, the gross margin is 20%.

Local calculation

The arithmetic runs in your browser. This tool does not use market prices or claim that a result is competitive or recommended.

GOOD TO KNOW

Common questions

What is the selling price formula?

Selling price = cost × (1 + markup ÷ 100).

How is profit calculated?

Profit = selling price − cost, which is cost × markup ÷ 100.

Why is gross margin lower than markup?

Markup uses cost as its base, while gross margin uses the higher selling price as its base.