About this Markup Calculator
Markup helps retailers determine the selling price of their goods. It is the percentage added to the cost price to get the selling price. Correct markup ensures you cover overheads and generate a profit.
Who this calculator is for
- Retailers and service businesses setting cost-plus prices.
- Founders checking how markup choices translate into actual profit dollars and margin.
- Operators comparing pricing scenarios before publishing a catalog or quote.
When to use it
- Set a selling price from a known unit cost and target markup.
- Compare markup and margin so pricing decisions are not based on the wrong metric.
- Stress-test whether a discount or markdown still leaves a viable selling price.
How to use this calculator
- Enter the Cost of the product (what you pay the supplier).
- Enter your desired Markup %.
- The tool calculates the Selling Price required to hit that markup.
Key assumptions
- This calculator applies a single markup percentage to the entered cost.
- The result is a pre-tax selling price; shipping, sales tax, and channel fees must be handled separately if needed.
- Markup values at or below -100% create a zero or negative selling price and are treated as invalid.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
The formula for Selling Price based on Markup is:
Selling Price = Cost × (1 + Markup%)
For example, if cost is $100 and markup is 25%, Price = $100 × 1.25 = $125.
Inputs explained
Cost
The purchase price or production cost of the item.
Markup Percentage
The percentage you want to add on top of the cost.
Understanding your results
The Selling Price is what you should charge customers. The Gross Profit is the actual dollars you make per sale. The Resulting Margin shows you the profit as a percentage of the selling price.
Example scenarios
Keystone Pricing
Cost $25. Markup 100%. Selling Price $50. This is a common retail strategy where price equals double the cost.
Clearance
Cost $50. Markup -10%. Selling Price $45. A negative markup implies selling at a loss.
Key Features
- Cost-Plus Logic
- Profit Visualization
- Margin Cross-Check
Tips & Best Practices
- Don't confuse Markup with Margin. If you want a 50% Margin, you need a 100% Markup.
- Consider psychology: Selling for $19.99 often converts better than $20.00.
- Factor in shipping and handling costs into your 'Cost' input to ensure your markup covers everything.
Glossary of Terms
- Keystone Pricing
- A pricing method where merchandise is priced for resale at an amount that is double the wholesale price (100% markup).
- MSRP
- Manufacturer's Suggested Retail Price.
- Cost-Plus Pricing
- A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost.