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Markup Calculator
Turn a cost and markup into your selling price, profit, and margin in seconds. Or let ReInvestWealth track your revenue, costs, and profit automatically.
Trusted by 3,000+ entrepreneurs
30 days free · Cancel anytime · Built by CPAs
Selling price$140.00
Profit$40.00
Profit margin28.57%
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The formula
How to calculate markup
Markup is your profit measured against what an item cost you.
Markup % = (Selling price − Cost) ÷ Cost × 100
Selling price = Cost × (1 + Markup %)
Don't mix them up
Markup vs margin
Same sale, two different percentages. Pricing off the wrong one quietly eats your profit.
An item that costs $100 and sells for $140 earns $40 profit.
Markup
40%
$40 ÷ $100 cost
Margin
28.6%
$40 ÷ $140 price
Same $40 profit. Markup is always the larger number.
Markup, profit, and your IRS return
Markup and margin price a single sale. The IRS taxes your total business profit for the year, reported on the form for your structure.
Sole proprietorSchedule C with Form 1040
CorporationForm 1120 (or 1120-S)
Pricing
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FAQ
Markup, explained
How do I calculate markup?
Markup is your profit as a percentage of cost. Subtract the cost from the selling price to get the profit, then divide by the cost and multiply by 100. For example, an item that costs $100 and sells for $140 has a $40 profit, which is a 40% markup. The calculator above does this instantly, and also shows the selling price if you enter a cost and a target markup.
What's the difference between markup and margin?
Both measure profit, but against different bases. Markup is profit divided by cost; margin is profit divided by the selling price. The same $40 profit on a $100 cost is a 40% markup but only a 28.6% margin (40 ÷ 140). Markup is a higher number than margin for the same sale, which is why confusing the two leads to underpricing. Use the profit margin calculator when you want margin.
How do I set a selling price from a target markup?
Multiply your cost by 1 plus the markup percentage. A $100 cost with a 50% markup gives a $150 selling price ($100 × 1.5). Enter your cost and markup in the calculator and it returns the price, profit, and margin.
What is a good markup percentage?
It varies by industry and by whether you sell products or services. Retail often runs 50% or more; trades and services set markup to cover labour, overhead, and a profit cushion. Rather than copy a benchmark, work backwards from the margin you need to be profitable after all costs. The calculator lets you test different markups and see the margin each one produces.
Do I report markup or profit to the IRS?
You report profit, not markup. Markup is a pricing tool; the IRS taxes your net business profit for the year. Sole proprietors report it on Schedule C with Form 1040, and corporations file Form 1120 (or 1120-S for an S corporation).
Is this markup calculator free?
Yes, it's free with no sign-up required. ReInvestWealth is accounting software that tracks your costs, revenue, and profit automatically, so you can see real margins across your whole business, not just one item. You can start a free 30-day trial anytime.
More free tools
Know your margins across the whole business.
A calculator prices one item. Let ReInvestWealth track your costs, revenue, and profit automatically, so every price you set is based on real numbers.