How this calculator works
Markup is added to cost to set a selling price. Margin is the percentage of the selling price that becomes gross profit. Many pricing errors happen because markup and margin are confused.
Selling price = cost × (1 + markup %)
Margin = profit ÷ selling price
Margin = profit ÷ selling price
A 50% markup does not produce a 50% margin. Margin is calculated from selling price, not cost.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
Planning note: Markup Calculator gives an educational estimate. It does not include every tax rule, fee, platform policy, market condition, or personal constraint, so use it as a quick planning reference rather than a final decision.
FAQ
What is markup?
Markup is the percentage added to cost to create a selling price.
How is markup different from margin?
Markup is based on cost; margin is based on selling price.
What markup should I use?
It depends on industry, competition, demand, and overhead.
Does markup include taxes?
Usually no. Taxes are often added after the selling price.
Can I use this for services?
Yes, use your delivery cost as the cost input.