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Calculate a selling price by applying a markup percentage to the cost of one recipe portion or product. The calculator also reports gross profit per item and the resulting gross-margin percentage. It clarifies how a markup on cost translates into a margin on selling price.
Recipe markup calculator
Results are estimates based on the values you enter. Nothing you type is sent to or stored on our servers.
Formula and interpretation
Let C be unit cost and M be markup percentage. Selling price = C × (1 + M ÷ 100). Profit per item = selling price − C. Gross margin = profit ÷ selling price × 100%, when selling price is positive. Markup is applied to cost, not to the final selling price.
Markup and gross margin are different ratios. Markup = profit ÷ cost × 100%; gross margin = profit ÷ selling price × 100%. A 60% markup therefore does not mean a 60% gross margin.
Verified numerical example
If the cost per portion is 5.00 and the markup is 60%, selling price = 5 × (1 + 0.60) = 8.00. Profit per item = 8 − 5 = 3.00. Gross margin = 3 ÷ 8 × 100 = 37.5%. The calculator should report 8.00 selling price, 3.00 profit and 37.5% gross margin.
If the markup is 100%, the selling price is twice the cost and the gross margin is 50%. This illustrates why a 100% markup is not a 100% margin.
How to use the calculator
- Enter the full unit cost for one saleable portion or item.
- Enter the markup percentage you want to apply to that cost.
- Calculate and review the suggested selling price, profit per item and gross margin.
- Check whether the price also covers costs not included in the unit-cost input.
Limitations and pricing judgment
The result is a mathematical price from the entered cost and markup. It does not estimate customer demand, competitor prices, taxes, delivery fees, payment commissions, labor, rent or other operating expenses unless those are already included in unit cost. If the input contains ingredient cost only, the resulting margin is before those additional costs.
Choose a markup with a complete cost definition and realistic sales context. Round the calculated price only after checking the new margin. For a target gross-margin percentage rather than a markup, use a margin-to-markup relationship or a target menu price calculator.
Frequently asked questions
Is 50% markup the same as 50% margin?
No. A 50% markup on cost produces a 33.3% gross margin. The denominators differ.
Does this include tax?
No. Add tax using the applicable local rules after determining the pre-tax price.
Related tools
For a target margin, use the Gross Margin to Markup Calculator. For target food-cost pricing, see the Menu Price Calculator.