How it works
The cost is multiplied by 1 plus the markup expressed as a decimal, so a 30% markup multiplies by 1.30. Profit is the difference between the selling price and the cost.
Formula: Selling price = cost × (1 + markup ÷ 100)
Examples
A standard markup
A cost of 100 with a 30% markup sells for 100 × 1.30 = 130, a profit of 30.
Things to keep in mind
- Markup expresses profit as a percentage of cost. This is not the same as profit margin, which expresses the identical profit as a percentage of the selling price instead — see the Profit Margin Calculator. A 30% markup on 100 works out to only about a 23.1% margin.
- The cost and markup percentage must both be zero or more.