Finance 2026-05-03 3 min read By Konvertibly Team

Markup Calculator: Setting Prices Above Cost

Calculate selling price from cost and markup percentage, convert between markup and margin, and avoid the most common pricing mistake that costs businesses thousands.

Markup: Pricing Above Your Cost

Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of cost. It is the foundational pricing tool for retailers, manufacturers, and service businesses. Confusing markup with margin is one of the most common and costly accounting mistakes.

Markup Formula

Selling price = Cost × (1 + markup%)
Markup% = [(Selling price − Cost) ÷ Cost] × 100

Examples

Cost £25, markup 60%: Selling price = £25 × 1.60 = £40
Cost £50, selling price £80: Markup = [(80−50)÷50] × 100 = 60%

Converting Between Markup and Margin

Margin from markup: Margin = Markup ÷ (1 + Markup)
Markup from margin: Markup = Margin ÷ (1 − Margin)

60% markup → Margin = 0.60 ÷ 1.60 = 37.5%
37.5% margin → Markup = 0.375 ÷ 0.625 = 60%

Common Industry Markups

Grocery retail: 10–30%
Fashion/apparel: 100–300%
Electronics: 20–50%
Restaurant food: 200–300%
Software/SaaS: 200–500%+ (high gross margins)

The Pricing Mistake

If you want a 40% margin, applying a 40% markup gives you only 28.6% margin. To achieve a 40% margin, you need a 66.7% markup. Set your target margin first, then calculate the required markup.

Calculate selling price from cost: Free Markup Calculator