Markup Calculator
Selling price and profit from markup.
The Markup Calculator helps retailers, wholesalers, and service businesses set prices by calculating the markup applied to cost. Enter your cost and desired markup percentage to find the selling price and profit — or enter the cost and price to calculate the implied markup. Unlike margin (which is profit as a percentage of selling price), markup is profit as a percentage of cost. Understanding the distinction helps you set prices that meet both your revenue goals and your competitive positioning in the market.
Markup Calculator
Formula
Examples
$50 Cost with 80% Markup
Find the selling price for an item costing $50 with an 80% markup.
→ Selling price: $90, Profit: $40, Margin: 44.4%
Clothing Store: $35 Cost, Target 120% Markup
A retailer buys a garment for $35 and wants a 120% markup.
→ Selling price: $77, Profit: $42
Find Markup from Cost and Price
A product costs $25 and sells for $60. What is the markup percentage?
→ Markup: 140%, Profit: $35, Margin: 58.3%
Wholesale to Retail: $200 Wholesale
A retailer purchases an item for $200 wholesale and applies a 50% markup.
→ Selling price: $300, Profit: $100, Margin: 33.3%
Tips
- ✓Always verify your markup gives you sufficient gross margin to cover operating expenses.
- ✓Factor in return rates, shrinkage, storage, and overhead when setting markup — COGS alone is not the full cost.
- ✓For e-commerce, add payment processing fees (typically 2–3%) to your effective cost before calculating markup.
- ✓High-demand, low-competition products can command larger markups; compare to competitor pricing regularly.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost of a product to set its selling price. Markup % = (Selling Price − Cost) / Cost × 100. It is expressed as a percentage of the cost, not the selling price.
How is markup different from margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Example: Cost $100, Price $150, Profit $50. Markup = $50/$100 = 50%. Margin = $50/$150 = 33.3%. Same profit, different percentages.
What markup percentage should I use?
Typical markup ranges by industry: Retail apparel: 50–100%. Electronics: 10–30%. Jewelry: 100–200%. Restaurant food: 200–400%. Software/digital products: 200–1000%+. Always verify your markup covers all overhead, not just COGS.
How do I convert a margin percentage to a markup percentage?
Markup % = Margin % / (1 − Margin % / 100). Example: 40% margin → Markup = 40 / (1 − 0.40) = 40 / 0.60 = 66.7%.
What is cost-plus pricing?
Cost-plus pricing is a straightforward strategy where you add a fixed markup percentage to your cost to set the price. It is simple but does not account for market demand, competitor pricing, or perceived value.
Can markup be negative?
No — negative markup would mean selling below cost (a loss). However, selling below cost is sometimes intentional as a loss leader to attract customers, but it is not sustainable as a primary strategy.