Markup Calculator
Calculate selling price from cost and desired markup percentage. See gross margin comparison.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
Revenue
$75.00
Profit
$25.00
Gross Margin
33.3%
Calculation Details
| Cost | $50.00 |
| Markup (50%) | $25.00 |
| Selling Price | $75.00 |
| Gross Margin % | 33.33% |
Comparison at Different Markups
| 25% markup | $62.50 (profit: $12.50, margin: 20.0%) |
| 50% markup | $75.00 (profit: $25.00, margin: 33.3%) |
| 100% markup | $100.00 (profit: $50.00, margin: 50.0%) |
| 200% markup | $150.00 (profit: $100.00, margin: 66.7%) |
Use the Markup Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Setting the right price comes down to your cost and the profit margin you want from it. With operational costs climbing and supply chains growing more tangled in 2026, getting that number right has rarely carried more weight for staying both profitable and competitive. Working through a few markup percentages side by side shows how each one moves your gross margin, so you can land on the figure that meets your financial goals.
The core formula is direct: Selling Price = Cost / (1 - Desired Markup Percentage as a Decimal). From there, gross margin works out to (Selling Price - Cost) / Selling Price * 100. Building the price this way applies your markup to cost rather than to the selling price, a distinction that often gets blurred and quietly produces thinner profits than expected.
Markup and gross margin are separate measures, and conflating them is the usual source of trouble. Your desired markup percentage should reflect the profit you want on top of cost, not a slice of the final selling price. Build that cost figure from every direct input as well, materials, labor, and any direct overhead that the product or service carries.
Example: Pricing a New Smartwatch Model for 2026
- 1 A tech retailer in Q3 2026 wants to price a new smartwatch model. The direct cost to acquire and prepare each smartwatch for sale is $180. They aim for a 35% markup on this cost to cover overheads and achieve desired profit.
- 2 Using the formula: Selling Price = $180 / (1 - 0.35) = $180 / 0.65 = $276.92. The gross margin is ($276.92 - $180) / $276.92 * 100 = 35%.
- 3 The recommended selling price for the smartwatch is $276.92. This price yields a 35% gross margin, which aligns with the retailer's desired profit target.
- 4 This pricing strategy ensures that the retailer achieves their desired profitability per unit. They can now compare this price to market competitors and adjust, knowing the minimum profitable selling price, which is crucial in the competitive 2026 electronics market.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What is the difference between markup and margin?
How do I calculate markup percentage?
What is the standard markup for retail?
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