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Price from Markup illustration

Small Business · Pricing

Price from Markup

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Use this to set a selling price by adding a percentage markup on top of what an item or job costs you.

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Interactive workbench

Retail markup

Cost×1+Markup%100

A $50 cost with a 40% markup sells for $70.

Step 1 of 3

Variables and units

  • Cost

    What the item or job costs you.

    currency

  • Markup

    Markup percentage to add on top of cost.

    percent

Common mistakes

  • Confusing markup with margin.
  • Marking up after discounts instead of before.

Step-by-step example

Retail markup

  1. 1. Start with the example inputs

    • Cost$50
    • Markup40%

  2. 2. Apply the formula

    Cost×1+Markup%100

  3. 3. Run the numbers

    $70.00

    A $50 cost with a 40% markup sells for $70.

What this result means

$70.00 is the selling price after your markup on cost. Markup and margin are different animals: a 50% markup yields a 33% margin on the sale. Check that the implied margin covers overhead and profit — and sanity-check the price against what the market actually pays.