Markup From Cost and Price
Enter the cost and selling price to find the markup, how much you add to cost, as a percentage, to reach the price.
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Enter the cost and selling price to see the markup.
Worked example
With these example inputs:
- Cost$60
- Selling price$100
Markup: 66.67%
- Change40
Frequently asked questions
What is markup?
Markup is the difference between cost and price, expressed as a percentage of cost. A $60 item sold for $100 carries a 66.7% markup.
How is markup different from margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of price. The same dollar profit gives a higher markup than margin.
What is markup in simple terms?
Markup is how much you add on top of what an item cost you, shown as a percentage of that cost, to reach the selling price. So if something costs you 60 and you sell it for 100, you have added 40 on top of the cost, which is a markup of about 66.67 percent. It is the most common way retailers and wholesalers set their prices from cost. The bigger the markup, the more you add over what you paid.
How does the tool work out the markup?
It subtracts the cost from the selling price to find the profit, then divides that profit by the cost and shows it as a percentage. So a cost of 60 and a price of 100 give a profit of 40 and a markup of about 66.67 percent. This is the same as the percentage increase from the cost to the price. The result is a single percentage figure.
How is markup different from margin, and what does this leave out?
Markup and margin use the same profit but a different base, markup divides by the cost while margin divides by the selling price, so the same sale gives a higher markup than margin. A cost of 60 and price of 100 is a 66.67 percent markup but only a 40 percent margin. This tool looks at one product and one sale, and it ignores overhead, fixed costs, and taxes. Make sure the cost you enter is the full unit cost, and treat the markup as a per-item figure.