What Is a Markup Calculator?
A markup calculator computes the selling price of a product based on its cost and a desired markup percentage. Markup is the amount added to the cost price to arrive at the selling price, and it is a fundamental concept in retail, wholesale, and e-commerce pricing strategies.
How to Use This Markup Calculator
- Enter the cost price of the item (what you paid to acquire or produce it).
- Enter your desired markup percentage.
- Click “Calculate” to view the selling price, profit amount, and equivalent profit margin percentage.
Key Concepts
Markup is calculated as: Selling Price = Cost × (1 + Markup%). For example, a 50% markup on a $20 item yields a $30 selling price. It is important to distinguish markup from margin: markup is based on cost, while margin is based on selling price. A 50% markup corresponds to a 33.3% profit margin. Understanding this distinction prevents pricing errors that can erode profitability.
Markup % = ((Selling Price − Cost) ÷ Cost) × 100
Frequently Asked Questions
What is the difference between markup and margin?
Markup is calculated on cost (profit ÷ cost), while margin is calculated on revenue (profit ÷ selling price). A 100% markup equals a 50% margin.
What is a typical markup percentage?
It varies by industry. Grocery stores often use 25–50%, clothing retail 50–100%, and jewelry 100–300%. The right markup depends on operating costs, competition, and perceived value.
How do I calculate markup from a target selling price?
To find the markup percentage manually, subtract the cost from the selling price and divide by the cost: ((Selling Price − Cost) ÷ Cost) × 100. Then enter that markup percentage into this calculator to verify the profit and margin.