Markup Calculator

Set a selling price by applying a markup percentage to your cost.

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About this calculator

Markup is the percentage you add on top of your cost to reach a selling price. It is how most trades, retailers and wholesalers set prices day to day. This calculator turns a cost and a markup percentage into a selling price, and also shows the profit margin that results — because a 50% markup is not a 50% margin, and mixing the two up is one of the most expensive pricing mistakes a small business can make.

The formula

Selling price = Cost × (1 + Markup ÷ 100) Resulting margin (%) = (Price − Cost) ÷ Price × 100

Worked example

A product costs you £40 and you apply a 50% markup.

Selling price = £40 × 1.5 = £60
Profit per sale = £20
Resulting margin = £20 ÷ £60 × 100 = 33.3%

Common mistakes

Assuming a 50% markup gives a 50% margin — it gives 33.3%.
Marking up from an incomplete cost that ignores delivery, packaging or card fees.
Copying a competitor's price without knowing whether their cost base is lower than yours.

Frequently asked questions

Work backwards from the profit margin your business needs, then check the resulting price against the market. Retail markups of 50–100% (known as keystone) are common; food and hospitality often use 200–300%.

Markup % = Margin ÷ (100 − Margin) × 100. For example a 40% margin requires a 66.7% markup.

No — calculate your selling price from your net cost, then add VAT at the end if you are VAT-registered. Marking up gross costs double-counts the tax.

Assumptions & limitations

The cost you enter is assumed to be your full unit cost excluding VAT. The calculator does not add VAT to the selling price.

Sources & verification

This calculator applies the standard formula published above to the figures you enter — it relies on no external statutory data. The formula and the worked example were checked by hand against each other.

Formula last verified: 24 July 2026

Maintained by: Steve Davis, Founder & Editor — see our editorial standards

Spotted an error or an out-of-date figure? Report it — corrections are prioritised over all other work (see our corrections policy).