Use the free Markup Calculator to quickly determine how much to add to your product cost, calculate your selling price, and see the gross margin produced by your desired markup.
Enter your product cost and markup percentage to get an instant pricing breakdown.
Enter Your Pricing Details
$
Enter the amount you pay to purchase or produce one unit.
%
Enter the percentage you want to add to your product cost.
Please enter a product cost greater than zero.
Your Results
Product Cost
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Markup Amount
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Selling Price
—
Profit per Unit
—
Gross Margin
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Results are estimates and do not include additional expenses such as shipping, payment processing, advertising, or taxes.
How to Calculate Markup
Markup measures how much you increase a product’s cost when setting its selling price.
Markup Amount = Product Cost × Markup Percentage
Selling Price = Product Cost + Markup Amount
For example, if a product costs $50 and you apply a 40% markup:
Markup Amount: $20
Selling Price: $70
The calculator above performs these calculations automatically and also shows the resulting gross margin.
Markup vs. Profit Margin
Markup and profit margin both measure profitability, but they use different starting points.
Markup compares profit to the original product cost.
Profit margin compares profit to the final selling price.
For example, if a product costs $50 and sells for $100:
Markup: 100%
Gross Margin: 50%
This difference matters when setting prices. A 50% markup does not produce a 50% profit margin.
If you want to measure profitability based on your revenue and business expenses, use the Profit Margin Calculator →
Markup Example
Suppose you purchase a product for $80 and want to apply a 25% markup.
Your markup amount would be:
$80 × 25% = $20
Your selling price would therefore be:
$80 + $20 = $100
Your profit per unit would be $20, while the resulting gross margin would be 20%.
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