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Markup Calculator
Calculate the selling price of your products based on cost and desired markup percentage. Markup is essential for retailers, wholesalers, and any business setting prices. This free calculator instantly shows you the markup amount and final selling price, helping you maintain healthy profit margins.
What is Markup?
Markup is the percentage added to the cost of a product to determine its selling price. Businesses use markup to ensure they make a profit after covering all costs.
Markup shows how much extra you add to the cost of a product to create the final selling price.
For example, if a product costs $50 and the business adds a 40% markup, the selling price becomes higher than the original cost.
- Production costs
- Operating expenses
- Marketing expenses
- Business profit
When is Markup Used?
- Retail stores
- E-commerce businesses
- Wholesale businesses
- Manufacturing companies
- Restaurants
- Online marketplaces
- Freelancers and service providers
Common Markup Percentages
| Industry | Typical Markup |
|---|---|
| Retail | 30–50% |
| Restaurants | 60–200% |
| Fashion | 100–300% |
| Electronics | 15–30% |
| Wholesale | 20–40% |
Markup Formula
Markup (%) = (Selling Price − Cost) / Cost × 100
Cost represents the production or purchase cost while selling price represents the final product price.
Real Markup Example
Cost = $20
Markup = 50%
Selling Price = $30
Profit = $10 per product
Who Should Use a Markup Calculator?
- Retail store owners
- E-commerce sellers
- Wholesale distributors
- Manufacturers
- Restaurant owners
- Startup founders
- Online marketplace sellers
Markup vs Profit Margin
Markup is calculated based on cost while profit margin is calculated based on revenue.
Cost = $50
Selling Price = $100
Markup = 100%
Profit Margin = 50%
Common Markup Mistakes
- Confusing markup with profit margin
- Ignoring operating expenses
- Not including marketing costs
- Using outdated cost estimates
- Pricing too low due to competition
How to Use This Markup Calculator
- Enter the cost price of your product.
- Enter your desired markup percentage.
- View the markup amount and selling price instantly.
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Frequently Asked Questions
What is markup?
Markup is the percentage added to the cost price to determine the selling price. It represents the profit as a percentage of the cost.
What is the difference between markup and margin?
Markup is calculated on cost (profit/cost × 100), while margin is calculated on revenue (profit/revenue × 100). A 50% markup equals a 33.3% margin.
How much markup should I add?
Markup varies by industry: retail typically uses 50-100%, wholesale 10-30%, and food service 200-400%. Consider competition, demand, and operating costs.
Is markup the same as profit margin?
No. Markup is based on cost while profit margin is based on revenue.
Can markup be negative?
Yes, if you sell below cost to clear inventory or attract customers.
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