Markup Calculator

Work out a selling price from your cost and a target markup percentage — and see the resulting profit margin, which is not the same number.

Markup is added on top of cost — a 50% markup on a 700 cost gives a 1,050 selling price.

Selling price

PKR 910

Profit per unitPKR 210
Resulting profit margin23.1%

Markup vs. margin — the confusion this tool solves

Markup is calculated as a percentage of cost: how much you add on top of what something cost you. Margin is calculated as a percentage of selling price: how much of the final sale price is profit. The same sale has two different-looking percentages depending on which base you measure from, which is why a "50% markup" and a "50% margin" produce very different selling prices from the same cost.

A worked example

Take a product costing 700. A 50% markup means adding 50% of 700 (which is 350) to get a selling price of 1,050. But that sale's profit margin is only 33.3% (350 profit ÷ 1,050 selling price) — not 50%. To achieve an actual 50% margin from the same 700 cost, the selling price would need to be 1,400 instead.

Why this matters for pricing decisions

Businesses that mix up the two can systematically under-price their products — assuming a target margin when they have actually only hit that percentage as markup, which is always a smaller number for the same input. This calculator starts from markup (the more intuitive "add X% to cost" framing) and always shows the resulting margin alongside it, so the gap between the two is visible rather than hidden.

Frequently asked questions

Is a 100% markup the same as doubling the price?

Yes — a 100% markup means adding 100% of the cost on top of itself, which doubles the selling price. That specific case is the one point where markup and a simple doubling coincide.

Which should I use for pricing — markup or margin?

Margin is generally more useful for tracking overall business profitability, since it directly tells you what percentage of revenue is profit. Markup is often more convenient at the point of pricing an individual item, since it starts from a known cost. Many businesses use markup to set prices and margin to evaluate results.

Does this include taxes or other selling costs?

No — this calculates a straightforward cost-to-price markup. Taxes, payment processing fees, shipping, and other selling costs would need to be added to the cost base first if you want the final price to account for them.