Calculate how much profit you make above your cost price and determine the markup percentage on a product, service, or other item.
Markup is the percentage added to the cost of an item to arrive at its selling price. For example, if an item costs ₦10,000 and you sell it for ₦12,000, your profit is ₦2,000 and your markup is 20%.
Important: Markup is calculated using the cost price, while profit margin is calculated using the selling price.
Enter your cost price and selling price to calculate your profit, markup percentage, and profit margin.
You only need two figures: your cost price and your selling price.
Enter what the product, service, or item costs you. This could include the purchase price or another cost you use as the basis for pricing.
Enter the amount at which you intend to sell the product or service.
Resouria calculates the difference between the two prices and expresses that difference as a percentage of the cost price.
The results also show your profit margin so you can see why markup and margin should not be used interchangeably.
Here is a breakdown of the profit generated by the selling price you entered.
Suppose you purchase a product for ₦50,000 and sell it for ₦65,000.
The product therefore has a 30% markup on its cost price. Its profit margin, however, is approximately 23.08% of the selling price.
Markup helps businesses decide how much to charge above their cost. A consistent markup can make pricing easier when selling multiple products or services.
For example, a retailer may decide to apply a particular markup percentage to different products. The calculator can help check whether the resulting selling price gives the intended level of profit.
However, markup should not be the only factor considered when setting prices. Operating expenses, taxes, payment processing costs, shipping, discounts, competition and customer demand can all affect the final price decision.
Check the markup applied to products before displaying them for customers.
Compare cost and selling prices when determining wholesale or distribution pricing.
Estimate the profit generated by different selling prices.
Compare the markup on different products to understand how their pricing differs.
This calculator calculates markup from the cost price and selling price you provide. It does not determine whether a particular selling price is appropriate for your business or market.
The markup calculation is performed directly in your browser using JavaScript. The cost and selling prices entered into this calculator are used to produce the result on this page and are not required to be sent to a server for the calculation.
Results provided by this calculator are estimates based solely on the values you enter. They are intended for general informational and pricing-planning purposes and should not be treated as accounting, tax, investment, or professional financial advice.
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