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DIY Cost Tools

Markup Calculator

PRICING & COST CALCULATOR

Calculate a selling price from unit cost and markup, with the equivalent gross margin.

All fields are required. Use matching currency and quantity units. Absolute inputs must not exceed one trillion. Use a complete and consistently defined unit cost. Fees, overhead, returns, shipping, and tax may require separate treatment. This tool calculates gross profit, not guaranteed business earnings.

Selling price ($)60
Gross profit per unit ($)20
Equivalent gross margin (%)33.33333333

How to use this calculator

Replace the example values with figures for the same product, period, or project. Select Calculate and compare the result with your quote, budget, or accounting records. Retain precision until you record the final amount.

Formula and explanation

Selling price = cost × (1 + markup/100); profit = price − cost; margin = profit ÷ price × 100

A 50% markup on $40 adds $20 and yields a $60 price. The $20 profit is one-third of that selling price.

Worked example

Using Unit cost ($) = 40, Markup on cost (%) = 50, the results are Selling price ($): 60; Gross profit per unit ($): 20; Equivalent gross margin (%): 33.333333.

Important limitations

Use a complete and consistently defined unit cost. Fees, overhead, returns, shipping, and tax may require separate treatment. This tool calculates gross profit, not guaranteed business earnings.

This tool provides arithmetic estimates for planning, not individualized accounting, tax, financial, or construction advice. Confirm important business and project decisions with appropriate records and professionals.

Frequently asked questions

Does a 50% markup give a 50% margin?

No. It gives about a 33.33% gross margin.

Can I enter zero markup?

Yes. Price then equals cost and gross profit is zero.

Why are more than two decimals shown?

Extra precision helps compare rates and unit prices. Round final currency payments according to applicable billing rules.

What happens with blank inputs?

The calculator clears old results and displays a validation message.

Review notes

Reviewed October 1, 2026. Default results were independently checked against the displayed formulas. Script checks covered blank, negative, nonfinite, and excessive inputs. Calculations run in your browser.

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