This calculator helps you calculate a selling price by adding a markup percentage to your cost. It also shows the profit generated per sale.
Markup is widely used in retail, ecommerce, and wholesale pricing because it provides a simple way to build prices from cost. However, markup alone does not show true profitability — that depends on margin and total costs.
This tool helps you quickly calculate selling prices and understand how markup affects profit.
The selling price is the final price after markup is added to cost. Profit is the difference between the selling price and cost.
This helps you quickly evaluate whether your pricing is strong enough to support business costs and profitability.
Selling price = Cost × (1 + Markup ÷ 100)
This formula adds a percentage on top of cost to create a selling price. It is a simple and widely used pricing method.
Markup is useful for quick pricing, but it does not directly show profitability. Two products with the same markup can have very different margins depending on their selling price.
For ecommerce businesses, markup must also cover VAT, platform fees, payment processing, shipping, and advertising costs. A markup that looks sufficient on paper can quickly become unprofitable once these costs are included.
Understanding the relationship between markup, margin, and total costs is essential for building sustainable pricing strategies.
Example 1:
£40 cost + 50% markup → £60 selling price → £20 profit
Example 2:
£80 cost + 25% markup → £100 selling price → £20 profit
Example 3:
Higher markup increases profit but may impact competitiveness.
A percentage added to cost to create a selling price.
No. Margin is based on selling price.
It provides a simple pricing method based on cost.