Markup Calculator

Category: Other Finance
- April 06, 2025
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Calculate markup, selling price, or cost price using this markup calculator. This tool is helpful for businesses and retailers to determine profitable pricing strategies.

Markup Calculator

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Additional Options

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Advanced Options

About Markup Calculation

Markup is the difference between the selling price and the cost price of a product, expressed as a percentage of either the cost price (regular markup) or the selling price (margin).

Markup vs. Margin: What's the Difference?
  • Markup: Calculated as a percentage of the cost price. This is the traditional markup.
  • Margin: Calculated as a percentage of the selling price. Also known as gross margin.

For example, a product with a $60 cost and $100 selling price has:

  • Markup: ($100 - $60) ÷ $60 × 100 = 66.67%
  • Margin: ($100 - $60) ÷ $100 × 100 = 40%
Markup Calculation Formulas
  • Regular Markup (based on cost):
    • Selling Price = Cost Price × (1 + Markup% ÷ 100)
    • Cost Price = Selling Price ÷ (1 + Markup% ÷ 100)
    • Markup% = ((Selling Price ÷ Cost Price) - 1) × 100
  • Margin Markup (based on selling price):
    • Selling Price = Cost Price ÷ (1 - Margin% ÷ 100)
    • Cost Price = Selling Price × (1 - Margin% ÷ 100)
    • Margin% = (1 - (Cost Price ÷ Selling Price)) × 100
Common Markup Percentages by Industry
  • Retail: 30-50%
  • Grocery: 15-25%
  • Restaurants: 60-300%
  • Clothing: 50-300%
  • Electronics: 5-15%
  • Jewelry: 100-400%
  • Furniture: 40-100%
Tips for Setting Effective Markups
  • Consider all costs, including overhead and operating expenses
  • Research competitor pricing within your market
  • Evaluate the perceived value of your product
  • Factor in seasonality and product lifecycle
  • Regularly review and adjust markups based on performance

What Is a Markup Calculator?

The Markup Calculator is a helpful pricing tool that allows you to determine either the selling price, cost price, or markup percentage of a product based on the values you provide. It’s commonly used by small businesses, retailers, and entrepreneurs to set prices that ensure profitability.

Whether you're managing a retail store, selling on platforms like Etsy or Amazon, or comparing pricing strategies, this calculator helps simplify the numbers so you can make informed decisions quickly.

Key Markup Formulas

Based on Cost Price:

  • Selling Price = Cost Price × (1 + Markup% ÷ 100)
  • Cost Price = Selling Price ÷ (1 + Markup% ÷ 100)
  • Markup% = ((Selling Price ÷ Cost Price) - 1) × 100

Based on Selling Price (Margin):

  • Selling Price = Cost Price ÷ (1 - Margin% ÷ 100)
  • Cost Price = Selling Price × (1 - Margin% ÷ 100)
  • Margin% = (1 - (Cost Price ÷ Selling Price)) × 100

How to Use the Markup Calculator

Follow these steps to calculate markup easily:

  • Select what you want to calculate: Selling Price, Cost Price, or Markup Percentage.
  • Enter the known values such as cost, selling price, or markup rate.
  • Choose if the markup is based on cost or selling price (also known as margin).
  • Optionally, you can add a tax rate and choose how many decimal places you want in the result.
  • Click the Calculate button to view the results and step-by-step breakdown.

Why Use This Calculator?

This markup percentage tool helps you:

  • Set profitable prices for your products or services.
  • Adjust for tax or VAT using the built-in VAT computation feature.
  • Choose whether your markup is based on cost or on selling price, giving you flexible options.
  • Get a clear breakdown of how the numbers are calculated, which is useful for internal reporting or training staff.

It also acts as a lightweight alternative to more advanced financial tools like a profit calculator, commission breakdown estimator, or even a simplified revenue calculator for small businesses.

Use Cases for Small Business Owners

This tool is particularly useful if you:

  • Sell products on marketplaces like Amazon, eBay, or Etsy and need a quick pricing guide.
  • Want to check profitability before launching a product.
  • Run promotions and need to calculate discounts or margins quickly.
  • Compare markup vs. margin to make better pricing decisions.

Frequently Asked Questions (FAQ)

Can I include taxes like VAT in my price calculation?

Yes. The calculator includes a tax field where you can enter a tax rate to see the after-tax selling price. This makes it a handy VAT calculator or tax-inclusive pricing tool.

What’s the difference between markup and margin?

- Markup is calculated based on the cost price.
- Margin is calculated based on the selling price.

Both help you understand profitability, but margin is often used in financial reporting.

Is this tool similar to a profit calculator?

Yes, it provides a breakdown of cost, markup, and selling price, making it useful for basic profit estimation and business profit analysis.

Who can use this calculator?

Retailers, resellers, wholesalers, ecommerce sellers, and anyone setting product prices. It’s also useful as a commission calculator reference when determining sales targets and bonuses.

Can this replace a full financial system?

No. It’s a simple tool meant for quick calculations and not a replacement for bookkeeping or inventory software.

Related Tools Worth Exploring

If you find this calculator helpful, you might also benefit from tools like:

These tools can work together to help you make informed financial decisions, whether you're estimating monthly payment breakdowns, evaluating your pricing markup, or trying to better understand your product's profitability.