Markup Calculator

Markup on cost: inputs and result

Enter cost per unit and a markup percentage. This version calculates a selling price from those two inputs; it does not accept a selling price to reverse-calculate markup.

How the calculation works

The entered markup is applied to cost. The dollar difference between price and cost is shown alongside the equivalent margin on selling price.

Formula and assumptions

Price = cost × (1 + markup ÷ 100). Gross profit = price − cost. Margin = gross profit ÷ price × 100. Markup uses cost as its denominator; margin uses selling price.

Using the fields

1. Enter the complete unit cost you want to mark up.
2. Enter a markup such as 50 for 50%.
3. Calculate the price and read the equivalent margin separately.
4. Allow for any selling costs not included in the entered cost.

Worked examples

50% markup

A $40 cost with 50% markup gives $40 × 1.5 = $60. Gross profit is $20; margin is $20 ÷ $60 × 100 = 33.3%.

A supplier price change

At 50% markup, a cost increase from $18 to $21 changes price from $27 to $31.50. Keeping the old $27 price reduces markup to 28.6%.

Reading the result

The markup is the increase above entered cost, not the share of revenue left as profit. A 50% markup is a 33.3% margin before any costs excluded from the input.

Common mistakes

• Using a target margin percentage as a markup percentage.
• Omitting freight, packaging or other costs before setting a price.
• Mixing tax-inclusive and tax-exclusive amounts.

What is included

The calculation applies one percentage to one cost. It does not model sales volume, fixed overheads, GST registration or whether customers will pay the resulting price.

Using this calculation

Build the unit cost first, then apply markup. Use the markup and margin comparison if the target is a margin on sales.