Markup Calculator

Cost-plus pricing — adding a fixed markup on top of cost — is the most common way to set a selling price. This calculator applies your markup to cost and returns the selling price both before and after sales tax or VAT.

It also converts your markup into the equivalent profit margin, so you can check at a glance whether a price hits your target margin.

How to calculate Markup

1. Enter the unit cost (excluding tax).
2. Enter the markup percentage you want to add.
3. Enter a sales tax or VAT rate if applicable (otherwise leave 0).

Markup formula

• Selling price = Cost × (1 + Markup ÷ 100)
• Price incl. tax = Selling price × (1 + Tax ÷ 100)
• Margin = (Selling price − Cost) ÷ Selling price × 100

Markup example

A $400 cost with a 50% markup gives a $600 selling price, $200 profit per unit and a 33.33% margin.

Markup: common questions