Markup Calculator

This calculator supports two modes. In Cost → Price mode, enter your cost per unit and the desired markup percentage. The calculator instantly shows the selling price, dollar profit, and the equivalent gross margin percentage. In Price → Markup mode, enter both the cost and the selling price to reverse-engineer the markup percentage, margin percentage, and profit per unit. Both modes update in real-time with no "Calculate" button needed.

Markup is one of the most important metrics for any business that buys and sells goods. Whether you run an e-commerce store, a brick-and-mortar retail shop, or a wholesale distribution company, understanding your markup ensures that your prices cover costs and generate sustainable profits. Markup and margin are closely related — they describe the same dollar of profit — but they are expressed from different angles that serve different purposes.

The markup formula is Markup % = ((Selling Price − Cost) ÷ Cost) × 100. This tells you how much you added on top of your cost. The margin formula is Margin % = ((Selling Price − Cost) ÷ Selling Price) × 100. This tells you what share of the selling price is profit. To convert between them: Margin = Markup ÷ (100 + Markup) and Markup = Margin ÷ (100 − Margin).

For example, if you purchase a product for $20 and sell it for $35, the profit is $15. The markup is ($15 ÷ $20) × 100 = 75%, and the margin is ($15 ÷ $35) × 100 ≈ 42.9%. Retailers often target specific markup ranges: clothing stores commonly apply 50–100% markup (keystone pricing at 100%), electronics retailers may use 10–30%, while specialty food and beverage markups can exceed 200–300%.

Understanding markup helps you set competitive prices while maintaining healthy margins. If you know your target margin and need to find the corresponding markup, simply use our calculator in either mode, or use the conversion formulas above. Both numbers are crucial for financial forecasting, pricing strategy, and profitability analysis.

Grocery & supermarket: 5–15% markup. Thin margins offset by high volume. Clothing & apparel: 50–100% markup (keystone pricing). Restaurants: 200–400% markup on food, 300–500% on drinks. Jewelry: 100–300% markup. Electronics & consumer tech: 10–30% markup. Furniture: 80–150% markup. Health & beauty: 50–100% markup. E-commerce / dropshipping: 30–100% markup depending on product category and competition.

These benchmarks are starting points — your actual markup should factor in overhead, rent, marketing costs, wages, and competitive pricing in your market. If your total expenses are high, even a 100% markup might not be enough to turn a profit. This calculator focuses on per-unit economics; be sure to factor in your fixed costs as well.