Free pricing & profit tool
Markup Calculator: Cost, Price and Markup Percentage
To calculate markup, subtract your cost from the selling price, divide by the cost, and multiply by 100. A serum that costs your practice $32 and sells for $64 has a markup of (64 − 32) ÷ 32 × 100 = 100%. To find a price from a markup, multiply cost by (1 + markup ÷ 100). The calculator below solves for price, markup or cost and shows the margin too.
Prepared by Prospyr · Reviewed October 3, 2026 · Free, no sign-up, runs in your browser
Markup is profit as a percent of cost.
Quick markups
100% markup doubles your cost (called keystone pricing in retail).
Selling price
$64.00
Your cost
$32.00
Markup
100%
Profit per item
$32.00
Gross margin
50%
profit ÷ price
100% markup is a 50% margin. Margin is always the smaller number: 100 ÷ (100 + 100) = 50%.
A math aid. It does not set your prices; check them against your costs, your market and any manufacturer pricing policy.
Markup formula and the three ways to use it
Every markup problem is one equation with three unknowns. Fill in any two and solve for the third.
- Markup % = (price − cost) ÷ cost × 100
- Price = cost × (1 + markup ÷ 100)
- Cost = price ÷ (1 + markup ÷ 100)
The IRS tells retail and wholesale businesses to test their gross profit by dividing it by net receipts and comparing the result with their markup policy (Publication 334). A big gap between the two means a sales, purchase or inventory figure is wrong. Margin is what that test measures; markup is how you set the price.
Worked example: retail skincare markup
These items show how the same cost and price give a markup and a margin. The costs are made-up round numbers for the example, not brand pricing.
| Item | Cost | Price | Profit | Markup | Margin |
|---|---|---|---|---|---|
| Cleanser | $14 | $35 | $21 | 150% | 60% |
| Sunscreen | $22 | $44 | $22 | 100% | 50% |
| Serum | $32 | $64 | $32 | 100% | 50% |
| Eye cream | $27 | $58 | $31 | 114.8% | 53.4% |
For the eye cream: (58 − 27) ÷ 27 = 1.148, so 114.8% markup. The margin is 31 ÷ 58 = 53.4%.
Markup percentage to margin chart
Margin = markup ÷ (100 + markup). Use this chart to translate between the two. For the reverse, markup = margin ÷ (100 − margin), and the margin calculator shows that table.
| Markup on cost | Gross margin | $100 cost sells for |
|---|---|---|
| 10% | 9.1% | $110 |
| 20% | 16.7% | $120 |
| 25% | 20.0% | $125 |
| 30% | 23.1% | $130 |
| 40% | 28.6% | $140 |
| 50% | 33.3% | $150 |
| 60% | 37.5% | $160 |
| 75% | 42.9% | $175 |
| 100% | 50.0% | $200 |
| 150% | 60.0% | $250 |
| 200% | 66.7% | $300 |
| 300% | 75.0% | $400 |
Where markup stops: treatments, time and overhead
Markup works for products with a clear purchase cost. A treatment also uses provider time, room time and card fees, none of which show up on a supplier invoice. The treatment pricing calculator adds those costs before it sets a price, and the COGS calculator shows what your product spend is as a share of revenue.
Once a price is set, practice analytics in Prospyr show what each service and product earns, so you can compare it with the markup you planned. Built for med spas.
Frequently asked questions
How do you calculate markup percentage?
Markup percentage is (selling price − cost) ÷ cost × 100. A product you buy for $14 and sell for $35 has a $21 profit, and 21 ÷ 14 × 100 = 150% markup. The base is always cost, which is what separates markup from margin.
How do I find the selling price from cost and markup?
Multiply the cost by 1 plus the markup as a decimal. At a 60% markup, a $22 product sells for 22 × 1.60 = $35.20. Many practices then round to a clean retail price such as $35 or $36.
What is the difference between markup and margin?
Markup is profit divided by cost, and margin is profit divided by price. The same sale gives two different percentages: a $32 item sold for $64 is a 100% markup and a 50% margin. Margin is always the smaller number, so a 50% markup is only a 33.3% margin.
What markup should a med spa put on retail skincare?
There is no single right answer; it depends on your wholesale cost, brand minimum advertised pricing and what your market will pay. Many brands set a suggested retail price, and your markup is then whatever that price leaves over your cost. Enter your own cost and the brand's retail price to see the markup and margin you actually earn.
How do I work out cost from the price and markup?
Divide the price by 1 plus the markup as a decimal. If an item sells for $58 and you apply a 115% markup, the cost is 58 ÷ 2.15 = $26.98. Use the Cost tab above to do this without a calculator.
Can markup be over 100%?
Yes. A markup above 100% means the price is more than double the cost. Because margin can never reach 100%, markups of 150% or 300% are common: they are 60% and 75% margins.
Does markup include my overhead?
Only if you put overhead in the cost. The calculator uses whatever cost you enter, so a purchase price gives you a gross figure. Rent, payroll and card fees come out of that profit afterward, which is why the margin calculator has a revenue-and-costs mode.
Sources and scope
- IRS Publication 334 (2025), Tax Guide for Small Business: chapter 7, Figuring Gross Profit
Defines gross profit as net receipts minus cost of goods sold and tells retail businesses to divide gross profit by net receipts and compare it with their markup policy.
Arithmetic only. The percentages follow the standard formulas; the only cited source here is the IRS gross-profit test. Prices you charge are your decision.