Markup Calculator
Markup is the percentage added to the cost price to arrive at the selling price. Formula: Selling Price = Cost × (1 + Markup% ÷ 100). Note: markup % and margin % are different — a 25% markup gives a 20% margin.
Calculate selling price from cost & markup
Enter your cost price and desired markup percentage.
Find markup % from selling price & cost
Already know the selling price? Calculate the markup % applied.
How the Markup Calculator works
Markup is the percentage you add to your cost price to produce the selling price. The formula is straightforward: Selling Price = Cost × (1 + Markup% ÷ 100). If your cost is £50 and you apply a 40% markup, the selling price is £70. This calculator also runs the reverse: given a selling price and cost, it tells you the markup percentage that was applied — useful when you receive an invoice and want to understand the supplier's margin.
It is important to distinguish markup from profit margin. Markup is calculated against cost; margin is calculated against the selling price. A 40% markup does not produce a 40% margin — it produces a 28.6% margin. Many UK businesses price using markup but report profitability using margin, so understanding the relationship between the two prevents costly pricing errors.
Typical UK retail markups vary by sector. Grocery retailers may work on 20–30% markup, while clothing and fashion commonly applies 100–200%. Service businesses often target a margin percentage rather than a markup, as their "cost" is predominantly labour. Whichever method you use, ensure your markup is sufficient to cover overheads and produce a net profit after all fixed costs are accounted for.
Frequently asked questions
What is markup in pricing?
Markup is the amount added to the cost price of a product to arrive at its selling price. It is expressed as a percentage of the cost. For example, if an item costs £40 and you apply a 25% markup, the selling price is £50. Markup is commonly used by retailers, wholesalers, and manufacturers to ensure a profit on each sale.
How do I calculate markup percentage?
Markup percentage is calculated using the formula: Markup % = (Selling Price − Cost) ÷ Cost × 100. For example, if you bought an item for £80 and sell it for £100, your markup is (£100 − £80) ÷ £80 × 100 = 25%.
What is a typical markup for retail?
Typical retail markups in the UK vary widely by sector. Clothing and fashion often carry markups of 100–300%, while electronics may be as low as 5–15%. Grocery items typically sit between 15–30%, and independent retailers often aim for 50–100% to cover overheads. The right markup depends on your cost structure, competition, and target margin.
What is the difference between markup and profit margin?
Markup is calculated as a percentage of cost, while profit margin is calculated as a percentage of the selling price. A 25% markup does not equal a 25% margin — it actually produces a 20% margin. The formula is: Margin % = Markup % ÷ (100 + Markup %) × 100. Confusing the two is a common pricing mistake that can erode profitability.
Related: Margin vs Markup · Profit Margin