Summary
Calculate markup amount and markup percentage from cost and selling price.
Calculation details
Markup uses cost as its denominator and is different from profit margin.
Formula
Markup = selling price - cost; markup rate = markup / cost.
Worked example
Worked example
$20 markup on $40 cost is a 50% markup rate.
How it works
Enter cost and selling price. Markup divides by cost — do not confuse it with margin, which divides by price.
Frequently asked questions
What does the Markup Calculator calculate?
Markup uses cost as its denominator and is different from profit margin.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.