Markup Calculator
Calculate markup, profit, selling price, cost, and profit margin for your products — and see exactly how markup differs from profit margin along the way.
This calculator provides pricing estimates based on the costs and markup you enter. Actual business profitability may vary depending on taxes, operating expenses, fees, discounts, returns, overhead, and other costs.
Markup vs. profit margin
The single most important distinction on this page — these are two different numbers, even for the exact same sale.
Markup
40%
₱240 ÷ ₱600 (cost)
Profit Margin
28.57%
₱240 ÷ ₱840 (selling price)
Markup answers "how much profit am I adding relative to my cost?" Margin answers "how much of my selling price is profit?" They use the same ₱240 profit, but different denominators — so they're never the same number, except when profit is exactly ₱0.
| Metric | Formula | Example |
|---|---|---|
| Profit | Selling Price − Cost | ₱840 − ₱600 = ₱240 |
| Markup | Profit ÷ Cost × 100 | ₱240 ÷ ₱600 × 100 = 40% |
| Profit Margin | Profit ÷ Selling Price × 100 | ₱240 ÷ ₱840 × 100 = 28.57% |
How is markup calculated?
A ₱240 profit on a ₱600 cost is (₱240 ÷ ₱600) × 100 = 40% markup.
How do I calculate selling price from markup?
For a ₱600 cost and a 40% markup, that's ₱600 × 1.40 = ₱840.
How do I calculate cost from selling price and markup?
For an ₱840 selling price at a 40% markup, that's ₱840 ÷ 1.40 = ₱600. Check it: (₱840 − ₱600) ÷ ₱600 × 100 = 40% — exactly the markup you started with.
Examples
Retail product
Cost ₱600.00 · Selling price ₱840.00
Online seller
Cost ₱400.00 · Selling price ₱600.00
Calculate markup
Cost ₱500.00 · Selling price ₱750.00
Calculate cost
Cost ₱800.00 · Selling price ₱1,000.00
Important information
Your product cost may not be your total cost
A product might really cost you: product acquisition + shipping + packaging + platform fees + payment fees + advertising + labor + other overhead. Using an incomplete cost can make a business look more profitable than it actually is — use the optional cost breakdown above to get closer to your real cost.
A markup doesn't guarantee a net profit
A product can have a 40% markup, but the business itself may still run a much lower net profit after rent, salaries, utilities, taxes, advertising, returns, platform fees, and other operating expenses.
What this calculator actually computes
With just a product cost and selling price, this gives you a product or pricing profit — not automatically your net profit. It's only described as net profit if you've entered a genuinely complete cost structure.
Taxes and fees aren't included automatically
This calculator doesn't calculate VAT, percentage tax, or income tax. If platform or payment fees apply to your sale, add them using the optional cost breakdown so they're reflected in your markup.
Frequently asked questions
Markup is the amount you add on top of your cost to set a selling price, expressed as a percentage of that cost.
Markup = Profit ÷ Cost × 100. For example, a ₱240 profit on a ₱600 cost is (₱240 ÷ ₱600) × 100 = 40% markup.
Markup measures profit as a percentage of your cost; profit margin measures the same profit as a percentage of your selling price. A ₱600 cost marked up 40% sells for ₱840 — that's a 40% markup, but only a 28.57% margin, because the two use different denominators.
Selling Price = Cost × (1 + Markup). A ₱600 cost at a 40% markup is ₱600 × 1.40 = ₱840.
Cost = Selling Price ÷ (1 + Markup). An ₱840 selling price at a 40% markup means the cost was ₱840 ÷ 1.40 = ₱600.
Yes. A 0% markup means you're selling at exactly your cost — a break-even price, not a loss.
That's a loss, not a negative markup input — use "Calculate Markup" mode with your actual cost and selling price, and the result will be clearly labeled as a loss with a negative markup and margin.
Only if you include them using the optional cost breakdown. Otherwise, markup is calculated on your product cost alone.
No. Markup is a percentage; profit is a peso amount. The same ₱240 profit can be expressed as a 40% markup or a 28.57% margin — same money, different percentages.
No. With just a product cost and selling price, this gives you a product/pricing profit — not your full net profit margin, which would also subtract rent, salaries, and other business expenses.
It varies significantly by industry, cost structure, and competition, so there's no single universal number. Research typical markups in your specific industry rather than aiming for a generic percentage.
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