Markup Calculator
Set a price from markup on cost, inspect an existing price, or work backward to a list price that preserves your target markup after a sale discount.
How to use this calculator
Formula and worked example
Sale price = list price × (1 − discount ÷ 100)
Target-mode list price = cost × (1 + target markup ÷ 100) ÷ (1 − discount ÷ 100)
Gross profit = sale price − cost
Realized markup = gross profit ÷ cost × 100
Gross margin = gross profit ÷ sale price × 100
Contribution after entered fee = gross profit − sale price × fee ÷ 100
A cost of 100 with 25% markup gives a list price of 125 and, without a discount, a gross margin of 20%. A 20% sale discount on that list price reduces revenue to 100 and gross profit to zero. To keep 25% markup after the same discount, target mode gives a list price of 156.25, so the sale price remains 125. A 3% selling fee then leaves 21.25 per unit after cost and that fee.
Markup and margin use different denominators
| Markup on cost | Price at cost = 100 | Gross margin |
|---|---|---|
| 10% | 110.00 | 9.09% |
| 25% | 125.00 | 20.00% |
| 50% | 150.00 | 33.33% |
| 100% | 200.00 | 50.00% |
Frequently asked questions
Is 25% markup the same as 25% margin?
Can I calculate the list price before a planned sale?
Why can the result show negative profit?
Why is margin undefined when sale revenue is zero?
Is contribution after fees my net profit?
Methodology and sources
Currency-neutral arithmetic for a single item type. It does not convert currencies, determine tax, allocate overhead or recommend a profitable markup. It assumes one sale discount and a percentage fee on discounted revenue. Target mode preserves gross markup before fees, not net profit. Negative markups are permitted down to −100%; cost must be positive.
- Intuit QuickBooks — markup calculation — Markup as profit relative to cost and its distinction from margin. Discount and fee scenarios here are explicit arithmetic extensions.
Sources checked September 1, 2026. Referenced organizations do not endorse Efficienco. Money is displayed to two decimal places, but calculations use unrounded values. Real invoices may round each line differently.