Markup Calculator
Markup is how much you add on top of cost to get the selling price. Enter cost and markup % to see the price, profit and the resulting margin.
What is markup?
Selling price = cost × (1 + markup ÷ 100). Markup is based on cost; margin is based on price — the same profit gives a bigger markup % than margin %.
How to use the markup calculator (formula)
Selling price = Product cost × (1 + Markup÷100)
Profit per unit = Selling price − Product cost
Profit margin = Profit per unit ÷ Selling price × 100
What each field means
- Product cost — Cost per unit.
- Markup — Markup percentage on cost.
Worked example
Using these numbers: product cost $25.00, markup 60%.
The selling price is $40.00.
- Profit per unit: $15.00
- Profit margin: 37.5%
How much markup should a product have?
Retail commonly uses 50–100% markup; products sold through paid ads often need 150%+ to cover ad cost.
Tips to improve your result
- Convert your target margin to markup before pricing.
- Higher ad costs need higher markup.
- Check competitor prices after applying markup.
- Use landed cost, not supplier price.
Frequently asked questions
What is the markup formula?
Price = cost × (1 + markup %).
Markup vs margin?
Markup = profit ÷ cost; margin = profit ÷ price.
What markup gives a 50% margin?
A 100% markup.
Is 30% markup enough for ecommerce?
Rarely — it leaves only about 23% margin before ads and fees.
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