To calculate selling price from markup, start with the cost and add the markup amount. This is useful when you know how much a product or service costs and want to set a selling price using a markup percentage.
Use the calculator to check your own numbers, then read the guide for formulas, examples, and common mistakes.
What Selling Price From Markup Means
Selling price from markup means calculating the final price by adding a percentage above cost.
For example, if an item costs 50 and you add a 40% markup, the selling price is 70.
This method is common in retail, ecommerce, wholesale, service pricing, and simple cost-plus pricing.
Selling Price From Markup Formula
The formula is: selling price = cost × (1 + markup percentage ÷ 100).
This formula first converts the markup percentage into a multiplier.
For example, a 25% markup becomes 1.25, and a 50% markup becomes 1.50.
Step 1: Start With Cost
Cost is the amount spent to create, buy, deliver, or provide the product or service.
If the cost number is incomplete, the selling price may not leave enough profit.
Costs can include product cost, materials, packaging, delivery-related costs, platform fees, or direct labour, depending on the business.
Step 2: Choose the Markup Percentage
The markup percentage is the amount added above cost.
A 20% markup means the selling price is cost plus 20% of cost.
A 50% markup means the selling price is cost plus 50% of cost.
Step 3: Calculate the Selling Price
Suppose cost is 80 and markup is 25%.
Selling price = 80 × (1 + 25 ÷ 100).
That becomes 80 × 1.25, which equals 100.
Another Example
Suppose cost is 120 and markup is 40%.
Selling price = 120 × 1.40.
The selling price is 168.
Markup Amount vs Selling Price
Markup amount is the money added above cost. Selling price is cost plus the markup amount.
If cost is 80 and markup amount is 20, selling price is 100.
For the full markup explanation, read Markup Formula.
Why Selling Price From Markup Is Not the Same as Profit Margin
Markup starts from cost. Profit margin compares profit with selling price.
A 50% markup does not mean 50% profit margin.
For the difference, read Profit Margin vs Markup.
Use the Calculator
Use the Markup Calculator to check markup numbers quickly.
If you also want to compare the final profitability, use the Profit Margin Calculator with the same cost and selling price.
This helps you see both markup and margin clearly.
Conclusion
To calculate selling price from markup, multiply cost by one plus the markup percentage divided by 100.
The formula is useful for setting prices from cost, but the result should also be checked against profit margin, discounts, and business costs.
Related guides and tools
FAQs
How do I calculate selling price from markup?
Use selling price = cost × (1 + markup percentage ÷ 100).
What is the selling price with 25% markup on 80?
80 × 1.25 = 100.
Is selling price from markup the same as margin?
No. Markup is based on cost, while margin is based on selling price.