Markup Calculator
Calculate markup percentage, selling price, or cost price for your products and services
What you pay for the product/service
Percentage to add on top of cost
Price you charge customers
About This Calculator
The Markup Calculator is an essential tool for retailers, wholesalers, and business owners who need to set profitable prices for their products and services. Understanding markup helps you price competitively while ensuring healthy profit margins. Markup represents the percentage increase from your cost to your selling price. It's a straightforward way to ensure every sale generates profit. Whether you're pricing inventory, services, or wholesale goods, this calculator gives you instant answers. This versatile calculator works three ways: find selling price from cost and markup, find markup percentage from cost and selling price, or find cost from selling price and markup. It also shows you the equivalent profit margin for easy comparison.
How to Use
- 1Select what you want to calculate (selling price, markup %, or cost)
- 2Enter the values you know
- 3View the calculated result along with profit per unit and margin
- 4Adjust inputs to find optimal pricing
Formula
Selling Price = Cost × (1 + Markup% / 100)Markup is the percentage added to the cost price to determine the selling price. It's different from margin, which is calculated from the selling price.
FAQ
Markup is profit as a percentage of COST. Margin is profit as a percentage of SELLING PRICE. Example: Buy for $50, sell for $100. Markup = 100%, Margin = 50%. They describe the same profit differently.
Markups vary by industry: Grocery (5-25%), Retail clothing (50-100%), Restaurants (200-400%), Jewelry (100-300%), Software (varies widely). Higher markups are common for specialty or luxury items.
Margin = Markup / (1 + Markup). For example, 50% markup = 50/150 = 33.3% margin. Conversely, Markup = Margin / (1 - Margin). 25% margin = 25/75 = 33.3% markup.
Both work, but be consistent. Margin is better for comparing to industry benchmarks and financial analysis. Markup is simpler for calculating selling prices from costs. Most retailers think in markup, accountants prefer margin.
Consider: competitor pricing, perceived value, operating costs, target profit, market positioning, and price sensitivity. Start with industry standards, then adjust based on your unique value proposition.