Markup Calculator
Calculate sale price, profit margin, and markup percentage instantly
Markup Calculator
Calculate sale price and profit using markup percentage
Enter the original cost of the product
Percentage added to cost price
Quick Examples
What is Markup?
Markup is the difference between the cost of a product or service and its selling price. It's expressed as a percentage of the cost price. Markup is essential for businesses to cover operating expenses and generate profit.
For example, if you purchase a product for $100 and sell it for $150, your markup is $50, which represents a 50% markup. Understanding markup helps businesses set competitive prices while ensuring profitability.
Markup vs. Margin: What's the Difference?
Markup
Markup is calculated as a percentage of the cost price. It shows how much you're adding on top of what you paid.
Markup% = (Profit / Cost) ร 100
Margin
Margin is calculated as a percentage of the selling price. It shows what portion of your revenue is profit.
Margin% = (Profit / Sale Price) ร 100
๐ก Key Insight: Markup and margin will never be the same number! Markup is always higher than margin for the same product. For example, a 50% markup equals a 33.33% margin.
When to Use This Calculator
Retail Pricing
Set competitive prices for products in your store while maintaining healthy profit margins
E-commerce Businesses
Calculate optimal pricing for online products considering platform fees and shipping costs
Wholesale Distributors
Determine bulk pricing strategies and volume discount structures
Service Providers
Price services and consulting packages to cover costs and generate desired profits
Pricing Strategies for Different Industries
๐ Food & Beverage: 60-80% Markup
Restaurants typically use higher markups to cover perishable inventory, labor, and overhead costs.
๐ Clothing & Apparel: 100-150% Markup
Fashion retailers often double or triple their costs to account for seasonal inventory and trends.
๐ป Electronics: 10-30% Markup
Tech products have lower markups due to high competition and rapid price changes.
๐ Jewelry: 200-300% Markup
Luxury items command premium markups reflecting brand value, craftsmanship, and exclusivity.
Frequently Asked Questions
What's a good markup percentage?
A good markup varies by industry. Generally, 50-100% markup is common in retail, while services might use 100-200%. The key is to cover all your costs (including overhead) and generate a reasonable profit while remaining competitive.
Should I use markup or margin for pricing?
Both are useful! Use markup when thinking about how much to add to your costs. Use margin when analyzing what percentage of your revenue becomes profit. Our calculator shows both so you can make informed pricing decisions.
How do I calculate markup from margin?
Use this formula: Markup% = Margin% รท (1 - Margin% รท 100). For example, a 25% margin equals a 33.33% markup. Our calculator does this conversion automatically!
Is my data safe using this calculator?
Absolutely! All calculations happen in your browser using JavaScript. No pricing data is sent to any server, ensuring your business information remains completely private and secure.
Can I use this for service-based pricing?
Yes! Calculate your "cost" by adding up all expenses (time, materials, overhead, etc.), then apply your desired markup to determine your service price. Many consultants use 100-200% markup on their costs.