ETEvoraTools
Business Calculators

Markup Calculator

Markup Calculator measures how much the selling price exceeds cost relative to that cost. A 50% markup on 100 cost gives a 150 selling price, but the corresponding margin is only 33.33%. Use a complete and consistent unit cost—including relevant acquisition or production costs—before relying on markup for pricing.

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Quick answer

What is the markup from 100 cost to 150 selling price?

The markup is 50%.

Formula: (150 − 100) ÷ 100 × 100 = 50%

Markup uses cost as its denominator

Markup = (selling price − cost) ÷ cost × 100. It describes the increase over cost rather than the share of sales kept as profit.

How it works

Enter cost and selling price for one comparable unit and currency. Interpret the result alongside discounts, fees, taxes, overhead, and desired margin.

Key concepts

Fifty percent markup is not fifty percent margin

A 100 cost sold at 150 has 50 profit, which is one third of revenue.

Cost basis determines the result

Landed cost, production cost, or fully allocated cost can produce different markups.

When to use it

  • Check a price increase over unit cost.
  • Compare markup policies using one cost definition.
  • Translate a proposed selling price into a markup percentage.

When not to use it

  • Do not report markup as profit margin.
  • Do not omit material costs merely to raise the percentage.
  • Do not assume listed price equals realized price after discounts and returns.

Worked examples

Common pricing example

Input
Cost 100; price 150
Expected output
50% markup

The fifty increase is half of cost.

Below-cost price

Input
Cost 80; price 60
Expected output
−25% markup

The negative value indicates a price below entered cost.

Double-cost price

Input
Cost 25; price 50
Expected output
100% markup

The increase equals the original cost.

Common mistakes

Dividing by selling price

That produces margin. Correction: Divide profit by cost for markup.

Using incomplete unit cost

Freight, packaging, or fees may be missing. Correction: Define and document the cost basis.

Ignoring realized discounts

Actual selling price can be lower than list price. Correction: Use expected realized price for planning.

Best practices

  • Use one unit and currency.
  • Document included costs.
  • Check resulting margin and market constraints separately.

Related operations and differences

Gross Profit Calculator

Choose Gross Profit Calculator when you need to calculate gross profit and gross margin.; use Markup Calculator specifically for markup.

Profit Margin Calculator

Choose Profit Margin Calculator when you need to calculate profit as a percentage of revenue.; use Markup Calculator specifically for markup.

Revenue Growth Calculator

Choose Revenue Growth Calculator when you need to measure growth between two revenue periods.; use Markup Calculator specifically for markup.

Burn Rate Calculator

Choose Burn Rate Calculator when you need to estimate average monthly cash burn.; use Markup Calculator specifically for markup.

Business Runway Calculator

Choose Business Runway Calculator when you need to estimate how many months current cash can cover.; use Markup Calculator specifically for markup.

Customer Churn Calculator

Choose Customer Churn Calculator when you need to calculate the percentage of customers lost.; use Markup Calculator specifically for markup.

Limitations and privacy

  • The result is a simplified management estimate, not accounting, tax, legal, or investment advice.
  • Discounts, returns, taxes, fees, and overhead are not automatically included.
  • Cost cannot be zero in the percentage formula.

Business figures are calculated locally in this browser and are not uploaded.

Frequently asked questions

What is the markup formula?

(Selling price − cost) ÷ cost × 100.

What margin results from a 50% markup?

When price is 1.5 times cost, margin is 33.33%.

Can markup be negative?

Yes, when selling price is below entered cost.

Should shipping be included in cost?

Include it when it belongs to the cost basis used for the pricing decision.