What Is Markup?
Markup is the amount added to a product's cost to arrive at its selling price, usually expressed as a percentage of the cost. Markup % = (selling price − cost) ÷ cost × 100. A 50% markup on an item that costs 40 gives a selling price of 60.
Converting Markup to Margin
Margin = markup ÷ (1 + markup). A 50% markup equals a 33.3% margin; a 100% markup equals a 50% margin.
Setting a Price From a Target Margin
Selling price = cost ÷ (1 − target margin). To earn a 40% margin on a cost of 60, the price is 60 ÷ 0.6 = 100.
🧮 Calculate It Yourself
Put Markup into practice with these free calculators — no sign-up, nothing stored.
🏷️
Markup & Margin Calculator
Find your selling price, or check your real profit margin.
Calculate →
🏷️
Discount Calculator
Find the sale price, or work out what discount you're actually getting.
Calculate →
🛍️
Online Seller Fee & Profit Calculator
See exactly what Etsy, eBay, or Amazon take — and what you keep.
Calculate →
🔗 Related Terms
More Business & Sales Terms
- Accounts Payable
- Accounts Receivable
- Average Order Value (AOV)
- Balance Sheet
- Burn Rate
- Cash Flow Statement
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.