Markup Calculator Formula
Learn how to calculate selling price, profit, margin, and totals from cost price and markup percentage.
The markup formula helps you turn a unit cost into a selling price by adding a chosen percentage to the cost. It also helps you estimate profit per unit, profit margin, total revenue, and total profit for a given quantity.
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Selling Price Per Unit
Where:
Start with the cost price, convert the markup percentage into a decimal, and add it to 1. Multiply that by the cost price to get the selling price per unit.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| costPrice - Cost price | The amount it costs to buy or produce one unit. | currency |
| markupPercent - Markup percentage | The percentage added to cost price to set the selling price. | percent |
| sellingPrice - Selling price per unit | The final price charged for one unit after markup is added. | currency |
| profitPerUnit - Profit per unit | The amount earned on each unit after subtracting cost from selling price. | currency |
| marginPercent - Profit margin | Profit expressed as a percentage of the selling price. | percent |
| quantity - Quantity | The number of units being priced. | number |
Step-by-Step Calculation
Calculate selling price per unit
Apply the markup percentage to the cost price to get the selling price for one unit.
sellingPrice = costPrice * (1 + markupPercent / 100)
Calculate profit per unit
Subtract the cost price from the selling price to find profit on each unit.
profitPerUnit = sellingPrice - costPrice
Calculate margin percentage
Divide profit per unit by selling price and convert to a percentage to find margin.
marginPercent = (profitPerUnit / sellingPrice) * 100
Calculate total cost
Multiply the unit cost by the number of units to estimate total cost.
totalCost = costPrice * quantity
Calculate total revenue
Multiply the unit selling price by quantity to estimate total sales value.
totalRevenue = sellingPrice * quantity
Calculate total profit
Multiply profit per unit by quantity to estimate total profit across all units.
totalProfit = profitPerUnit * quantity
Markup formula example
Selling price per unit
80 * (1 + 25 / 100)
$100.00
Profit per unit
100 - 80
$20.00
Margin percentage
(20 / 100) * 100
20%
Total revenue
100 * 10
$1,000.00
Total profit
20 * 10
$200.00
Final Result
With an $80.00 cost, 25% markup, and 10 units, the selling price is $100.00 per unit, profit is $20.00 per unit, margin is 20%, total revenue is $1,000.00, and total profit is $200.00.
Assumptions
- ✓Markup is applied to cost price rather than selling price.
- ✓Each unit has the same cost price and selling price.
- ✓Quantity is a whole-number count of units sold at the same price.
- ✓Taxes, shipping, discounts, and extra overhead are excluded unless already included in cost price.
Limitations
- !Real-world pricing may vary by customer, channel, or order size.
- !The formula does not account for fixed overhead, commissions, or payment processing fees.
- !Margin can change if discounts are applied after the selling price is set.
- !Results are estimates and do not reflect market demand or competitor pricing.
Common Mistakes to Avoid
Confusing markup with margin and entering the wrong percentage target.
Entering total batch cost instead of cost per unit.
Forgetting to include packaging, labor, or other direct costs in cost price.
Using a quantity total to estimate profit when unit prices are not the same for all items.
Assuming a higher markup always means the same margin percentage increase.
Related Formulas
Frequently Asked Questions
What is the formula for markup?
The basic selling price formula is cost price multiplied by 1 plus markup percentage divided by 100.
How do you calculate profit from markup?
First calculate the selling price, then subtract the cost price. That difference is the profit per unit.
How do you calculate margin from markup?
After finding profit per unit, divide profit by selling price and multiply by 100 to get margin percentage.
Why is margin lower than markup?
Markup is based on cost, while margin is based on selling price. Because the denominator is different, margin is usually lower than markup.
Can markup be 100%?
Yes. A 100% markup means the selling price is double the cost price, which creates a 50% margin.
What happens if markup is 0%?
The selling price equals the cost price, profit per unit is zero, and margin is zero.
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