Markup Calculator
Calculate the selling price from your cost and desired markup, or find out what markup percentage you applied to a sale. Includes a markup vs margin reference table so you never confuse the two.
Frequently asked questions
What markup percentage should I use?
There is no universal answer — it depends on your industry, competition, and costs. Retail products are often marked up 50–100%. Trade contractors typically mark up materials 20–40%. Professional services rarely sell physical goods, so markup is less relevant. A useful starting point: decide your target margin first, then work backwards to the required markup.
Is a 50% markup the same as a 50% margin?
No — this is a very common source of confusion. A 50% markup means you added 50% on top of cost: a £100 item is sold for £150. But your margin on that sale is only 33.3% (£50 profit ÷ £150 selling price). Always confirm whether a percentage is being stated as markup (on cost) or margin (on revenue).
What markup do I need to achieve a 40% margin?
To achieve a 40% gross margin, you need a markup of approximately 66.7%. The formula is: Markup % = Margin % ÷ (1 − Margin %) × 100. So for 40% margin: 0.40 ÷ 0.60 × 100 = 66.7%. Use the reference table in the calculator for common markup-to-margin conversions.
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