Markup Calculator: Find Your
Ideal Selling Price
Use our free markup calculator to instantly determine your selling price from cost and markup percentage, plus see your equivalent profit margin.
Markup Calculator
Calculate your selling price from cost and markup percentage
Input Values
Your cost to purchase or produce the item
The percentage to add on top of your cost
Results
Enter cost and markup
Results will appear here
See How Your Pricing Performs
While this calculator helps you set prices, StoreRadar shows you how those prices actually perform—tracking real margins, revenue, and profitability across your catalog.
What is Markup?
Understanding the foundation of cost-plus pricing
Markup is the percentage added to your product cost to determine the selling price. It's one of the most straightforward pricing strategies: you know what an item costs you, add your desired profit percentage, and arrive at your retail price.
Markup Formula
Example: $50 cost × (1 + 100%) = $100 selling price
Margin Formula
Example: ($100 - $50) / $100 = 50% margin
The key difference between markup and margin is what they're based on. Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. This is why a 100% markup equals only a 50% margin—the same dollar profit, expressed differently.
Markup vs Margin Conversion Chart
Quick reference for converting between markup and margin percentages
| Markup % | Margin % | Cost | Selling Price |
|---|---|---|---|
| 25% | 20% | $100 | $125 |
| 50% | 33.3% | $100 | $150 |
| 75% | 42.9% | $100 | $175 |
| 100% | 50% | $100 | $200 |
| 150% | 60% | $100 | $250 |
| 200% | 66.7% | $100 | $300 |
Notice how a 100% markup (doubling the cost) results in only a 50% margin (half the revenue is profit).
How to Calculate Markup (Step-by-Step)
Follow these four steps to calculate your selling price using markup
Determine Your Product Cost
Calculate the total cost to acquire or produce your product, including purchase price, shipping, duties, and any direct costs.
Choose Your Markup Percentage
Decide on the percentage you want to add to your cost based on industry standards, competition, and profit goals.
Apply the Markup Formula
Multiply your cost by (1 + markup percentage). For example, $50 cost × (1 + 100%) = $50 × 2 = $100 selling price.
Verify Your Margin
Always check your resulting profit margin to ensure it covers operating expenses and meets profitability targets.
Markup by Industry
Typical markup percentages across different retail sectors
Apparel & Fashion
Higher for branded items, lower for basics
Electronics
Competitive market with price-sensitive buyers
Jewelry & Accessories
High perceived value allows premium pricing
Food & Grocery
Perishables require faster turnover
Home & Furniture
Higher for custom/artisan pieces
Beauty & Cosmetics
Brand perception drives premium pricing
Common Markup Mistakes to Avoid
Four pricing errors that hurt your profitability
Confusing Markup with Margin
Using margin targets but calculating as if they were markup leads to underpricing. A 50% margin requires 100% markup, not 50% markup.
Ignoring Operating Costs
Your markup must cover more than just COGS. Factor in fulfillment, payment processing, marketing, and overhead to ensure true profitability.
Using One Markup for Everything
Different products have different price sensitivities. Premium products can sustain higher markups while commodity items need competitive pricing.
Not Testing Price Points
Many stores set prices once and never experiment. A/B testing prices or running promotions can reveal the optimal markup for each product.
Why Markup Matters for Your Business
Four critical ways markup decisions impact your ecommerce profitability
Predictable Profit Per Sale
With a consistent markup strategy, you know exactly how much profit each sale generates. This predictability makes financial planning and inventory decisions easier.
Cost Changes Stay Covered
When supplier costs increase, your markup percentage automatically adjusts the selling price proportionally, maintaining your profit margin without manual recalculations.
Easier Team Communication
Markup is intuitive—"add 50% to the cost" is easier for teams to apply consistently than complex margin calculations. This reduces pricing errors across your organization.
Scales with Volume
A percentage-based markup works whether you sell 10 or 10,000 units. As your volume grows, the math stays simple and your margins stay consistent.
About Markup in StoreRadar
StoreRadar focuses on tracking your actual sales performance: revenue, profit margins, COGS, and customer analytics. While we don't calculate markup for you (that's what this free calculator is for!), we show you how your pricing decisions perform in the real world—helping you understand which products are delivering healthy margins and which might need a pricing adjustment.
Frequently Asked Questions
Common questions about markup calculations and pricing strategy
Markup and margin are often confused but are calculated differently. Markup is the percentage added to your cost to get the selling price (based on cost). Margin is the percentage of the selling price that is profit (based on selling price). For example, if a product costs $50 and sells for $100, the markup is 100% (you added $50 to the $50 cost), but the margin is 50% ($50 profit is 50% of the $100 selling price).
To convert markup to margin, use this formula: Margin = Markup ÷ (1 + Markup). For example, a 100% markup (1.0) = 1.0 ÷ 2.0 = 0.50 or 50% margin. A 50% markup (0.50) = 0.50 ÷ 1.50 = 0.33 or 33% margin. This calculator shows you both values automatically.
A good markup varies by industry. Apparel typically uses 100-200% markup (50-67% margin). Electronics often use 30-50% markup (23-33% margin). Jewelry and luxury goods may use 200-400% markup (67-80% margin). Consider your market, competition, and operating costs when setting markup. Higher markups mean more profit per sale but may reduce sales volume.
Both are useful for different purposes. Markup is intuitive for cost-plus pricing—you simply add a percentage to your cost. Margin is better for understanding profitability relative to revenue. Most retailers think in terms of markup when pricing, but analyze performance using margin. Use whichever method your team understands best, but always know both numbers.
A higher markup increases your profit per unit, but may reduce sales volume if prices become uncompetitive. The key is finding the optimal markup that maximizes total profit. Consider factors like elasticity of demand, competitor pricing, and your target profit margin. Some products may need lower markups to drive volume, while premium products can sustain higher markups.
Margin is always lower than markup for the same product because they're calculated differently. Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. Since selling price includes both cost and profit, the denominator is larger for margin calculations, resulting in a smaller percentage. A 100% markup always equals a 50% margin.
See Your Actual Profit Margins
Use this calculator to set your prices, then connect StoreRadar to see how those prices perform. Track real margins, revenue trends, and product profitability across your WooCommerce store.
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