Markup Calculator
Quick pricing tool for anyone selling products. Enter your cost and desired markup to get the selling price, or work backwards from two prices to see what markup you're actually applying. Markup and margin aren't the same thing - this shows both.
How to use
- Pick a mode: either you know your cost and want a selling price, or you want to reverse-engineer the markup from existing prices.
- Enter the cost price - what you actually paid for it or what it costs to make.
- Fill in the markup % or selling price depending on which mode you chose.
- Check the margin % too - markup and margin sound similar but they're calculated differently.
Related tools:
Markup is the percentage you add to your cost to arrive at a selling price. If an item costs you Rs.500 and you apply a 60% markup, you sell it for Rs.800. This is different from profit margin, which is calculated based on the selling price rather than the cost. A lot of pricing confusion comes from mixing up these two terms, so knowing which one your industry uses matters.
Retailers typically work with markup; financial analysts prefer margin. This tool handles both directions - enter cost and markup% to get the selling price, or enter cost and selling price to see what markup you're actually charging. For eCommerce sellers, it's worth including platform fees, packaging, and shipping in your 'cost' before setting the markup so your final price actually leaves you with a profit.
Frequently Asked Questions
What's the difference between markup and profit margin?
Markup is calculated on cost: (selling price - cost) / cost x 100. Profit margin is calculated on revenue: (selling price - cost) / selling price x 100. A 50% markup gives you a 33.3% profit margin. They're both measuring the same gap between cost and price, just from different reference points.
Is there a standard markup percentage I should use?
It depends heavily on the industry. Grocery retail runs at 5-20%, electronics at 15-30%, clothing at 50-100%, and handmade goods often go even higher to account for labor. Check what competitors charge and what the market will bear.
How do I know if my markup is high enough to actually make money?
Your markup needs to cover all your overhead - rent, salaries, marketing, returns, etc. - not just the direct product cost. A common approach: figure out all your monthly fixed costs, estimate your monthly unit sales, and add the per-unit overhead to your cost before applying markup.