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Markup Calculator

Avoid underpricing inventory. The Markup Calculator allows e-commerce sellers and wholesalers to determine the ideal selling price based on target markup percentages, or calculate the exact markup percentage achieved from a given retail price.

Markup Calculator

Determine target retail price from markup percentage or calculate markup from price.

Unit Cost Basis*

Total acquisition or manufacturing cost

Desired Markup %*

Percentage added on top of cost basis

Calculated Markup & Pricing Results

Selling PriceRetail Price

$80.00

Cost + Gross Profit

Gross ProfitProfit

$30.00

Selling Price - Unit Cost

Markup Percentage

60.00%

(Gross Profit / Cost) × 100

Equivalent Profit Margin

37.50%

(Gross Profit / Selling Price) × 100

Retail Markup Formulas

1. Selling Price from Markup %

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

Calculates the retail price needed to achieve your target percentage markup.

2. Gross Profit

Gross Profit = Selling Price - Cost

The dollar spread between wholesale acquisition and retail price.

3. Markup % from Selling Price

Markup (%) = ((Selling Price - Cost) / Cost) × 100

Reveals the percentage added on top of your acquisition cost basis.

4. Equivalent Profit Margin (%)

Profit Margin (%) = ((Selling Price - Cost) / Selling Price) × 100

Margin as a share of final selling price. Always lower than markup.

Worked Example: Apparel Item with 75% Markup

Suppose you manufacture a graphic hoodie with a total landed cost basis of $40.00 and want to apply a 75% retail markup.

Input Values

Product Unit Cost:: $40.00
Desired Markup:: 75.00%

Calculated Output

Recommended Retail Price:: $70.00
Gross Profit Dollar Amount:: $30.00
Resulting Profit Margin:: 42.86%

Breakdown: Gross profit is $40.00 × 0.75 = $30.00. The retail selling price is $40.00 + $30.00 = $70.00. The resulting profit margin is ($30.00 / $70.00) × 100 = 42.86%.

Frequently Asked Questions

How do you calculate selling price from cost and markup percentage?

Selling Price = Cost × (1 + (Markup % / 100)). For example, if an item costs $20 and you want a 50% markup, the selling price is $20 × 1.50 = $30.

What is a standard retail markup?

A traditional retail markup is 'keystone pricing', which represents a 100% markup (doubling the wholesale cost, equivalent to a 50% profit margin). In competitive e-commerce markets, markups generally range from 50% to 250% depending on category and branding.

Why does a 50% markup not equal a 50% profit margin?

Markup is calculated relative to your cost, while profit margin is calculated relative to your final selling price. A 50% markup on a $100 product gives a $150 price and $50 profit. The profit margin is $50 / $150 = 33.33%.

Can I enter a negative markup?

Entering a negative markup implies you are pricing the product below its cost basis, which results in a negative profit and indicates a clearance or loss-leader pricing strategy.