Markup Calculator
Calculate markup percentage, selling price, cost, and profit for your business pricing strategy
Calculate Markup and Pricing
The amount you pay for the product/service
Percentage added to cost for profit
The price you sell to customers
Markup Results
Calculation: 0.00% = 100 × $0.00 ÷ $0.00
Markup Analysis
Example Calculation
Retail Store Example
Product: Designer T-shirt
Cost of goods: $20.00
Desired markup: 150%
Overhead costs: Rent, utilities, staff wages
Calculation
Revenue = Cost + (Cost × Markup ÷ 100)
Revenue = $20 + ($20 × 150 ÷ 100)
Revenue = $20 + $30
Selling Price = $50.00
Profit = $30.00
Profit Margin = 60%
Typical Industry Markups
Pricing Tips
Consider all overhead costs in your pricing
Research competitor pricing before setting markup
Higher markups work for unique or luxury items
Fast-moving items can have lower markups
Test different price points to optimize sales
Understanding Markup vs. Profit Margin
What is Markup?
Markup is the percentage increase from your cost to your selling price. It represents how much you add to the cost of goods to determine your selling price. Markup is calculated as a percentage of the cost.
Markup Formula
Markup % = (Profit ÷ Cost) × 100
For example: If you buy for $50 and sell for $75, your profit is $25. Markup = ($25 ÷ $50) × 100 = 50%
What is Profit Margin?
Profit margin is the percentage of profit relative to the selling price. It shows what percentage of your sales revenue is actual profit. Profit margin is calculated as a percentage of the selling price.
Profit Margin Formula
Profit Margin % = (Profit ÷ Revenue) × 100
Using the same example: Profit Margin = ($25 ÷ $75) × 100 = 33.33%
Key Differences
Markup
- • Based on cost
- • Can exceed 100%
- • Used for pricing decisions
- • Shows cost recovery
Profit Margin
- • Based on selling price
- • Cannot exceed 100%
- • Used for profitability analysis
- • Shows profit efficiency