How to calculate markup

Multiply the cost price by the markup percentage divided by 100 to find the profit. Add the profit to the cost price to calculate the selling price.

Example:
Cost price = $80
Markup = 25%

$80 × 25 ÷ 100 = $20
$80 + $20 = $100

Profit = $20
Selling price = $100

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When would you use markup?

Markup is used to work out how much has been added to the cost of a product or service to determine its selling price. It is commonly used by retailers, wholesalers and businesses when setting prices.

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For example, if a product costs $80 and is sold for $100, the profit is $20. Compared with the original cost of $80, this represents a 25% markup.

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Important: Markup and profit margin are different. Markup is calculated from the cost price, while profit margin is calculated from the selling price.

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Related calculation: Want to measure profit as a percentage of the selling price instead? Use our Profit Margin Calculator.