Finance & Business

Markup Calculator

Calculate selling price, markup amount, markup percentage and gross margin from cost, target markup and optional quantity, with a printable pricing note.

Use calculator See formula Questions

Default example100.00 selling price80.00 cost + 25% markup = 20.00 markup amount · unrounded price 100.00 · gross margin 20% · 1 item total 100.00

Calculator

Working calculator

Cost price (per item)Your direct cost or buy-in cost before markup.Markup percentage (% on cost)Markup is calculated on cost, not on the final selling price.Quantity (items)Optional quantity for a quote, invoice note or batch pricing record.Price rounding increment (currency units)Use 0.01 for cents, 0.05 for nickel rounding, or 1 for whole-dollar pricing.

Live result100.00 selling price80.00 cost + 25% markup = 20.00 markup amount · unrounded price 100.00 · gross margin 20% · 1 item total 100.00

Formula used

Markup amount = cost × markup percentage ÷ 100. Selling price = cost + markup amount. Gross margin percentage = markup amount ÷ selling price × 100. Batch total = rounded selling price × quantity.

This is the method behind the answer, so the result can be checked rather than simply trusted.

Visual grid

This number is one point on a larger pattern

Markup is not just a final answer. It is a step on a line: before and after, input and output, assumption and result.

Micro-timehours, minutes, shiftsHuman scaledays, weeks, projectsMacro-timemonths, years, calendars

InputFormulaResult

100.00 selling price

CalculationTime keeps the path visible: the input, the method and the final number belong together.

100.00 selling price80.00 cost + 25% markup = 20.00 markup amount · unrounded price 100.00 · gross margin 20% · 1 item total 100.00

Inputs

Cost price: 80 per item
Markup percentage: 25 % on cost
Quantity: 1 items
Price rounding increment: 0.01 currency units

Method

For an 80 cost and 25% markup, markup amount = 80 × 25 ÷ 100 = 20. Selling price = 80 + 20 = 100. Gross margin = 20 ÷ 100 × 100 = 20%. Ten items at 100 each give a batch total of 1,000.

Assumptions

Markup percentage is applied to cost price, not to final selling price.
Gross margin is calculated from selling price after markup; it will be lower than the markup percentage unless cost is zero.
The calculator does not include tax, shipping, platform fees, labour overhead, discounts, refunds, currency conversion or legal pricing rules unless you include them in the cost input.
Rounding is applied to the displayed selling price and batch total; keep the unrounded result visible when checking a quote.

Notes

Use this space on the printed report for client, supplier, classroom, job-location, measurement, quote or approval notes.

Formula

Worked example

For an 80 cost and 25% markup, markup amount = 80 × 25 ÷ 100 = 20. Selling price = 80 + 20 = 100. Gross margin = 20 ÷ 100 × 100 = 20%. Ten items at 100 each give a batch total of 1,000.

Professional note

Master’s Tip: do not confuse markup with margin. A 25% markup produces a 20% gross margin, so quote files should print both figures when profit expectations matter.

Regional and unit assumptions

Standard or basis: general retail and quote arithmetic. This page is an estimating aid, not tax, accounting or legal pricing advice. Use local tax, invoice and consumer-law requirements for final prices.

Assumptions and limitations

Markup percentage is applied to cost price, not to final selling price.
Gross margin is calculated from selling price after markup; it will be lower than the markup percentage unless cost is zero.
The calculator does not include tax, shipping, platform fees, labour overhead, discounts, refunds, currency conversion or legal pricing rules unless you include them in the cost input.
Rounding is applied to the displayed selling price and batch total; keep the unrounded result visible when checking a quote.

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Standard or basis

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master’s Tip: do not confuse markup with margin. A 25% markup produces a 20% gross margin, so quote files should print both figures when profit expectations matter.

Related calculators

Questions

How do I calculate markup?

Multiply cost by the markup percentage and divide by 100. Add that markup amount to cost to get the selling price.

What is a 25% markup on 80?

A 25% markup on 80 is 20, so the selling price is 100 before tax, shipping, discounts or other fees.

Is markup the same as margin?

No. Markup is measured against cost. Gross margin is measured against selling price. A 25% markup on cost produces a 20% gross margin.

How do I choose a markup percentage?

Start with all real costs, then add a markup that covers overhead, risk, desired profit and market limits. This calculator shows the arithmetic but does not decide the business strategy.

What should I print for a markup quote note?

Print cost, markup percentage, markup amount, selling price, gross margin, quantity, rounded total, assumptions, formula, date and notes so the price can be reviewed later.

Calculation note

Markup is one of the simplest pricing calculations, but it is also one of the easiest to misread. A clean pricing record separates cost, markup amount, selling price, margin and tax so nobody mistakes a markup target for take-home profit.

Markup starts from cost

A markup percentage answers: how much extra should be added to what the item, material or service costs before sale?

Margin reads from the selling price

Gross margin answers a different question: what share of the selling price remains after direct cost? That denominator change is why markup and margin differ.

Printed quote notes reduce pricing drift

When costs, quantities, rounding and assumptions are printed beside the result, a quote can be checked before it is sent and compared later when supplier prices change.

Sources and further readingCorporate Finance Institute — Markup Shopify — Profit margin and markup