Markup starts with cost
A 100% markup means adding an amount equal to the cost.
PROFIT TOOL
Calculate a selling price from cost plus markup, and instantly see the profit and implied margin that percentage creates.
Enter your numbers below. Results update automatically.
Use these numbers as a starting point for your pricing decision.
REAL-WORLD EXAMPLE
If a product costs $12 and you apply a 75% markup, the markup amount is $9 and the selling price is $21. That $9 profit is a 42.9% margin on the selling price. A 75% markup therefore does not mean a 75% profit margin.
HOW IT WORKS
Markup is one of the simplest pricing methods: start with cost and add a percentage. The important detail is remembering that markup and margin measure different things.
A 100% markup means adding an amount equal to the cost.
Selling price = cost + markup amount.
Because margin is measured against the larger selling price.
FORMULA
Knowing the formula makes it easier to adjust the tool to your own business model.
FAQ
It means the markup amount equals the cost. A $20 cost with 100% markup gives a $40 selling price.
A 100% markup produces a 50% margin before other costs.
Markup is a useful starting method, but handmade sellers should also consider labor, overhead, fees, market positioning, and demand.
RELATED TOOLS
Use these related calculators to check the next part of your pricing decision.
Use the free calculator for a quick estimate, then move your products into the full Pro Excel workflow.