Markup Calculator – Product Pricing & Profit

Easily determine the selling price for your products based on cost and desired markup percentage. Instantly see your gross profit per item.

Inputs

$
%

Results

Calculated Selling Price

$0.00

Gross Profit per Item

$0.00

What is Markup?

Markup is the amount added to the cost of a product to determine its selling price. It's expressed as a percentage of the cost, not the selling price.

Formula

Selling Price = Cost × (1 + (Markup % / 100))

Example: A product costs $25 and you want a 150% markup. The selling price will be $25 × (1 + 1.5) = $62.50.

Using markup is a straightforward way to ensure that every sale not only covers the item's cost but also contributes a specific amount towards your gross profit.

FAQ

What's the difference between Markup and Margin?
This is the most common question!
Markup is your profit as a percentage of the cost. (Profit / Cost).
Margin is your profit as a percentage of the selling price. (Profit / Selling Price).
For the same item, the markup percentage will always be higher than the margin percentage.
What is a good markup for e-commerce products?
There's no single answer. It varies wildly by industry. For example:
- Electronics: Often have low markups (10-30%).
- Apparel/Fashion: Typically have high markups (100-300%+).
- Jewelry/Accessories: Can have very high markups (200-500%+).
A common starting point for many DTC brands is "keystone pricing," which is a 100% markup.
Should I use the same markup for all my products?
Not necessarily. Many successful brands use a variable markup strategy. You might use a lower markup on high-volume "hero" products to stay competitive, and a much higher markup on accessories or less frequent purchases. This allows you to balance overall profitability across your entire catalog.
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