Markup Calculator
Calculate selling price from cost and desired markup percentage
Enter values above to calculate
How to Use
- Enter the cost of the product or service.
- Enter your desired markup percentage.
- Click 'Calculate' to see the selling price, profit, and resulting margin.
- Alternatively, enter cost and selling price to calculate the markup percentage.
- Use this tool to set pricing that meets your profitability goals.
About Markup
Markup Formula
Selling Price = Cost × (1 + Markup%). Profit = Selling Price − Cost. For example, a product costing $50 with a 60% markup: Selling Price = $50 × 1.6 = $80. Profit = $80 − $50 = $30. Note that the markup (60%) is based on cost, while the resulting margin (37.5%) is based on selling price.
Converting Markup to Margin
Margin = Markup / (1 + Markup). Markup = Margin / (1 − Margin). A 50% markup = 33.3% margin. A 100% markup = 50% margin. A 200% markup = 66.7% margin. This is why retailers need to know which metric they're discussing — a 50% markup is not the same as a 50% margin.
Typical Markup by Industry
Standard markup percentages by industry: Jewelry (50–200%), Clothing retail (50–100%), Electronics (10–30%), Auto parts (30–50%), Restaurant food (300–500% on raw ingredients), Books (40–50%), Furniture (200–400%). Higher-markup industries typically have lower sales volume or require significant overhead.
Setting the Right Markup
Your markup must cover not just profit but also: marketing costs, overhead (rent, utilities, staff), returns and damaged goods, and cost of capital. A simple rule: if your gross margin covers all overhead costs with profit left over, your markup is adequate. Always test prices against market rates — too high loses sales, too low leaves money on the table.
Key Features
- Calculates selling price from cost and markup percentage
- Shows the equivalent profit margin alongside markup percentage
- Bidirectional: enter cost and selling price to find markup
- Helps set pricing strategy for retail, wholesale, and service businesses