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Markup Calculator

Calculate markup percentage, selling price, and profit from cost. Determine retail pricing strategy with gross profit calculations for business and ecommerce.

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Product Pricing

$

Cost of goods sold / product cost

%

Percentage added to cost

Common markups:

Pricing Results

Selling Price
$150.00
Recommended retail price
Profit
$50.00
Profit Margin
33.3%

Pricing Breakdown

Product Cost (COGS):$100.00
Markup (50%):+$50.00
Selling Price:$150.00
Profit Margin:33.3%
Quick Reference: 50% markup = 33.3% margin
For every $100 in costs, you earn $50.00 in profit
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How to Use the Markup Calculator

Enter your product cost (COGS - Cost of Goods Sold) and desired markup percentage. The calculator shows your selling price, profit per unit, and resulting profit margin.

Markup Formula

Selling Price = Cost × (1 + Markup %)
Profit = Cost × Markup %
Margin = (Profit ÷ Selling Price) × 100

Example: $100 cost with 50% markup
Selling Price = $100 × 1.5 = $150
Profit = $50, Margin = 33.3%

Markup vs Margin Quick Conversion

MarkupMarginExample
25%20%$100 → $125
50%33.3%$100 → $150
100%50%$100 → $200
150%60%$100 → $250
200%66.7%$100 → $300
400%80%$100 → $500

Industry Standard Markups

  • Restaurants: 200-400% on food (300% is common)
  • Retail Clothing: 100-250%
  • Electronics: 30-50%
  • Furniture: 100-200%
  • Jewelry: 100-300%
  • Grocery Stores: 15-30%
  • Wholesale: 20-50%
  • Pharmaceuticals: 20-25%
  • Books: 100%
  • Coffee shops: 300-400%

Factors Affecting Markup

  • Operating Expenses: Rent, utilities, salaries need to be covered
  • Competition: Market prices limit how high you can markup
  • Product Differentiation: Unique products command higher markups
  • Volume: High-volume products can use lower markups
  • Perishability: Perishable items need higher markups due to waste
  • Market Position: Luxury brands use higher markups

Pricing Strategy Tips

  • Know your breakeven point (cost + all expenses)
  • Research competitor pricing before setting markup
  • Use higher markups on accessories/add-ons
  • Consider psychological pricing ($99.99 vs $100)
  • Adjust markup based on demand and seasonality
  • Factor in discounts/sales when setting initial markup
  • Review and adjust prices regularly based on costs
Business Tip: A 50% markup doesn't give you 50% profit margin. Always calculate actual margin to ensure profitability. Include ALL costs (materials, labor, overhead) in your COGS.

Frequently Asked Questions

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