Markup Calculator
Work out pricing two ways. Enter a cost and selling price to see the markup and margin, or enter a cost and a target markup to get the price you should charge.
How to use the markup calculator
- Pick a mode: cost plus price, or cost plus a target markup percent.
- Enter the unit cost, then either the selling price or the markup you want.
- Read off the markup, margin and profit per unit, and copy the price.
Examples
A 150% markup
Cost 40, price 100
Markup 150%, margin 60%, profit 60 per unit
Pricing from a target markup
Cost 40, target markup 150%
Selling price 100
Frequently asked questions
What is the difference between markup and margin?
Markup measures profit against cost, while margin measures profit against the selling price. The same dollar of profit gives a higher markup percent than margin percent. For example, buying at 40 and selling at 100 is a 150% markup but a 60% margin.
How do I set a selling price from a markup percentage?
Multiply the cost by one plus the markup as a decimal. Price equals cost times (1 + markup / 100). A 40 cost with a 150% markup gives 40 times 2.5, or 100. Switch the calculator to the cost plus markup mode to do this automatically.
What is a typical or good markup?
It varies by industry. Grocery and high-volume retail often run thin markups around 10 to 25%, general retail commonly uses 50 to 100%, and restaurants or specialty goods can mark up well over 100%. Set yours to cover overhead and the profit you need.
How do I convert a markup into a margin?
Divide the markup by one plus the markup. Margin equals markup / (1 + markup) when both are decimals. A 100% markup is a 50% margin, a 50% markup is a 33.3% margin, and a 150% markup is a 60% margin.
How is profit per unit calculated?
Profit per unit is simply the selling price minus the cost. Multiply it by the number of units you expect to sell to estimate total gross profit before overhead and other expenses.
Why must the cost be greater than zero?
Markup is profit divided by cost, so a cost of zero would mean dividing by zero. Enter the true unit cost, including any landed or production cost you want the price to recover.
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