Free tool
Markup calculator
Know what you paid and the markup you want? Get the selling price, the profit and the margin it gives.
Enter a cost price and the markup you want.
The formula
Selling price = Cost price × (1 + Markup % ÷ 100)
Profit = Selling price − Cost price
Margin % = Profit ÷ Selling price × 100
Worked example: a 1 L bottle of cooking oil
- Cost price 138, markup 20%.
- Selling price = 138 × 1.20 = 165.60.
- Profit = 165.60 − 138 = 27.60.
- Margin = 27.60 ÷ 165.60 = 16.7%.
Markup to margin, at a glance
A 20% markup does not give a 20% margin. The margin is always smaller, because it is measured against a bigger number, the selling price.
Markup 25% = margin 20%. Markup 33% = margin 25%. Markup 43% = margin 30%. Markup 67% = margin 40%. Markup 100% = margin 50%.
Pick a markup per kind of item
Fast sellers can carry a small markup because they turn over every day. Slow, special or hard-to-find items can carry more. A single markup for the whole shop usually leaves money on the table on some items and loses sales on others.
Once you have set prices, check them against what you actually sold. BusinessX shows profit on every sale, so you see which items earn their shelf space.
Questions people ask
How do I add a markup to a cost price?
Multiply the cost price by 1 plus the markup as a decimal. For a 20% markup, multiply by 1.20. Cost 138 becomes 165.60.
What markup gives a 30% margin?
About 43%. Margin 30% means profit is 30% of the price, so the cost is 70% of the price. The profit is 30 ÷ 70 = 42.9% of the cost.
Is markup the same as profit margin?
No. Markup is profit divided by cost, margin is profit divided by selling price. For the same item, markup is always the larger percentage.
Does this include shop expenses?
No. It covers the item only. Rent, electricity, wages and spoilage still have to be paid out of the profit.
Let the app do the sums.
BusinessX records every sale and shows your real profit, offline, on the phone you already have. Free to download, no sign-up.