Markup Pricing
A 40% markup makes the price 1.4× cost. Note the margin on revenue is then 28.6%, not 40%.
Your numbers
Sale price
16,800
Profit
4,800
Margin
28.6%
Formula
Sale price = Cost × (1 + Markup ÷ 100)
Markup on cost and margin on revenue are different numbers. Confusing them overstates what you actually keep.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| CostWhat it cost you to buy or make. Sale price minus this is profit. | 12,000 | 0 and up |
| Markup (%)Profit divided by cost. This one can exceed 100%. | 40 | 0 and up |
Step by step
Quick reference table
Results when only Cost changes and everything else stays put.
| Cost | Sale price | Profit | Margin (%) |
|---|---|---|---|
| 6,000 | 8,400 | 2,400 | 28.6 |
| 9,000 | 12,600 | 3,600 | 28.6 |
| 12,000 | 16,800 | 4,800 | 28.6 |
| 18,000 | 25,200 | 7,200 | 28.6 |
| 24,000 | 33,600 | 9,600 | 28.6 |
What each result means
| Result | At default values |
|---|---|
| Sale priceWhat you actually hand over at the till, after the discount. | 16,800 |
| ProfitSale price minus cost. | 4,800 |
| Margin (%)Profit divided by the sale price. It can never exceed 100%. | 28.6 |
Common mistakes
Markup on cost and margin on revenue are different numbers. Confusing them overstates what you actually keep.
Glossary
- Cost
- What it cost you to buy or make. Sale price minus this is profit.
- Markup
- Profit divided by cost. This one can exceed 100%.
- Sale price
- What you actually hand over at the till, after the discount.
- Profit
- Sale price minus cost.
- Margin
- Profit divided by the sale price. It can never exceed 100%.
Frequently asked questions
Q. How is Markup Pricing calculated?
Sale price = Cost × (1 + Markup ÷ 100) — A 40% markup makes the price 1.4× cost. Note the margin on revenue is then 28.6%, not 40%.
Q. Can you walk through an example?
With Cost 12,000, Markup 40%, the answer is Sale price 16,800.
Q. What do I need to enter?
Enter Cost, Markup. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Cost moves the answer to Cost 6,000 → Sale price 8,400 and Cost 24,000 → Sale price 33,600. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Markup on cost and margin on revenue are different numbers. Confusing them overstates what you actually keep.
Related calculators
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