Markup Calculator
Markup is how shops price. Cost plus a percent on top. This tool does that sum and shows the margin it makes.
Cost in, markup in, price out. With the profit per unit right there.
How to use this tool
- 1Cost times markup percent gives the add on.
- 2Cost plus add on gives your selling price.
- 3Margin shows the slice of the price you keep.
The math behind it
Markup = (price - cost) / cost x 100
Buy at 40, sell at 60 and the markup is 50 percent.
That same sale is a 33 percent margin, since margin uses price as base.
Who this tool is for
I watch which tools folk open most, and this one gets used by the same kinds of people again and again. If any of these sound like you, you are in the right place.
- Makers pricing a product for the first time
- Sellers checking a margin before a deal
- Shop owners setting shelf prices
I priced my first product with a 100 percent markup and felt like a genius. Then a shop took their cut and the margin went to soup. Markup on cost is where pricing starts, not where it ends. This tool shows both the price and the margin it leaves you.
Tips from me
- Markup uses cost as base, margin uses price. Mixing them is the classic pricing mistake.
- Retail often runs markup of 50 to 100 percent. Services can run far higher.
- Check markup per line. One loss leader can drag a whole shop.
Mistakes I see with this sum
These are the three slips I made my self or watch folk make most. Skip them and your number will be closer to the truth on the first try.
- 1Forgetting the channel cut. Wholesalers and shops take their slice.
- 2Confusing markup with margin. A 100 percent markup is a 50 percent margin.
- 3Ignoring charm pricing. 19.99 sells different to 20.04, same math.
Two words worth knowing
Markup
The percent added on top of your cost.
Charm price
A price ending in 9, set just under a round sum.
That is the whole page. The tool does the math, and the words above give it a shape. If a number still looks odd, change an input and watch what moves. Playing with the boxes taught me more than any guide did.
Common questions
+What markup do shops use?
It moves a lot. Retail goods often sit at 50 to 100 percent. Food can be higher. Know your trade and your costs.
+Markup and margin. Why do the numbers differ?
Markup is against cost. Margin is against price. A 100 percent markup is only a 50 percent margin.
+How is markup different from margin?
Markup is profit over cost. Margin is profit over price. The same sale shows a bigger markup than margin, always.
+What markup should I charge?
Start from your costs, your market and your margin target. Then check rivals are not selling the same thing for less.
+Can markup be over 100 percent?
Yes. Price at triple your cost and the markup is 200 percent. Margin there is 67 percent.