Ecommerce & profit
Markup Percentage Calculator
Measure the increase from unit cost to selling price as a percentage of cost, not as a margin on revenue.
Use markup for cost-plus pricing and supplier comparisons. Use profit margin when the denominator should be sales revenue.
What the result means
Markup uses cost as its base. A 50% markup means price is 1.5 times cost, not a 50% profit margin. A negative markup means the item sells below the supplied cost basis.
The formula
((Selling price - unit cost) / unit cost) * 100
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Unit cost (currency per unit)
- 40
- Selling price (currency per unit)
- 60
Markup on unit cost: 50%
A unit costing 40 and selling for 60 has a 20 increase over cost, or 50% markup.
How to use this calculator
- Set the per-unit cost basis you use for pricing.
- Enter the actual net selling price for that same unit.
- Divide the price-minus-cost difference by cost, then multiply by 100.
Why this number matters
Markup makes a cost-plus pricing policy explicit and avoids confusing a percentage added to cost with a percentage retained from revenue.
Input definitions
- Unit cost (currency per unit)
- Your chosen cost basis per unit, such as landed product cost; must be greater than zero.
- Selling price (currency per unit)
- Net selling price per unit after discounts, excluding pass-through tax.
Assumptions and limitations
- Only costs included in the unit basis are reflected; it is not automatically net profit.
- A zero-cost item has no defined markup percentage.
- A positive markup can still leave insufficient funds for advertising and overhead.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .