FinanceDefault example result: $65.10

Markup Calculator

Turn cost into a target selling price and see the margin created by that markup.

Published: March 31, 2026
Last updated: March 29, 2026

Calculator

Markup Calculator

Enter the direct cost of the item or service.

$

Add the percentage markup you want to apply to cost.

%

Example values are loaded.

Result

Your result

A 55% markup on $42.00 produces a selling price near $65.10.

Selling price

$65.10

Gross profit

$23.10

Gross margin

35.48%

Pricing inputs

Unit cost$42.00
Markup55%

Next steps

Compare before you move on

Most people use one calculator to answer the first question and a related tool to pressure-test the decision.

What this calculator shows

Markup and margin are related but not the same. A markup is applied to cost, while margin measures profit as a share of selling price.

This calculator gives you both numbers so you can price more confidently.

How to use it

  1. 1. Enter your unit cost or service cost.
  2. 2. Add the markup percentage you want to charge.
  3. 3. Review the final price, gross profit, and gross margin together.

Formula and assumptions

Selling price = cost x (1 + markup rate).

Gross margin = gross profit / selling price x 100.

Notes

The calculator does not include tax, shipping, or payment processing fees.

Worked example

A $42 cost with a 55% markup is a simple way to compare selling price and margin side by side.

This example uses the default sample inputs loaded on reset. It does not update with the live calculator entries above.

Selling price

$65.10

Gross profit

$23.10

Gross margin

35.48%

Feedback

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FAQ

FAQ

Why is gross margin lower than markup?

Because markup is based on cost, while gross margin is based on the final selling price. The denominator changes.

FAQ

Should I use markup or margin to set prices?

Markup is useful for pricing from cost. Margin is useful for evaluating whether the resulting price is profitable enough.