Free tool
Markup calculator - markup percentage on materials
Work out the selling price with the markup you add to materials, or find the markup in percent from cost price and selling price. The calculator also shows what the markup equals as gross margin.
Your purchase price from the wholesaler.
Result
- Cost price
- DKK 1,000.00
- Markup amount
- DKK 250.00
- Selling price excl. VAT
- DKK 1,250.00
- Markup
- 25%
- Equals gross margin
- 20%
- Selling price incl. 25% VAT
- DKK 1,562.50
All amounts are excl. VAT unless stated otherwise. The calculation runs in your browser - nothing is sent or stored.
The formula
Selling price = cost price × (1 + markup / 100)
Markup % = (selling price - cost price) / cost price × 100
Gross margin % = markup / (100 + markup) × 100
All prices are excluding VAT. VAT is added at the end.
Worked example
The materials for a job cost DKK 4,000 from the wholesaler. You add 25% markup.
Selling price = 4,000 × 1.25 = DKK 5,000
Markup = 5,000 - 4,000 = DKK 1,000
Gross margin = 1,000 / 5,000 × 100 = 20%
The same DKK 1,000 is therefore 25% markup and a 20% margin. Including VAT, the customer pays DKK 6,250 for the materials.
The difference between markup and margin
Markup and gross margin describe the same amount - the difference between cost price and selling price - but each divides by a different number. Markup divides by the cost price, margin by the selling price.
They are easy to mix up. If you type 25% into a field that expects a margin but mean markup, you sell at 33.3% markup instead of 25%. The other way round, the quote ends up too cheap.
To work out the margin on the whole quote, use the gross margin calculator.
Read also the guide on markup on materials.
| Markup | Gross margin | Selling price for DKK 100 |
|---|---|---|
| 10% | 9.1% | DKK 110.00 |
| 15% | 13% | DKK 115.00 |
| 20% | 16.7% | DKK 120.00 |
| 25% | 20% | DKK 125.00 |
| 30% | 23.1% | DKK 130.00 |
| 40% | 28.6% | DKK 140.00 |
| 50% | 33.3% | DKK 150.00 |
| 75% | 42.9% | DKK 175.00 |
| 100% | 50% | DKK 200.00 |
| 150% | 60% | DKK 250.00 |
Build the whole quote with your own prices
The calculator works out one number. Calco works out the whole quote: materials from your wholesaler's price file, your hourly rates and your markup, VAT and total - ready to send with a link the customer can accept online.