Markup Calculator

Calculate the selling price and profit based on the cost and desired markup percentage.

Pricing Inputs

Cost of Goods ($)

Markup (%)

Percentage added to cost

Pricing Analysis

Selling Price$70.00

Gross Profit$20.00

Gross Margin28.6%

Markup is added to cost, while Margin is calculated as a percentage of the final price. Markup is always higher than Margin.

Overview

Markup is the amount added to the cost price of goods to cover overhead and profit. It is a fundamental concept in retail and manufacturing pricing strategies.

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Pro Tips

Keystone pricing is a common retail strategy where the markup is 100% (doubling the cost).
Be careful not to confuse markup with margin; a 50% markup results in only a 33.3% gross margin.
Consider your competitors' pricing and your target market's price sensitivity when setting markups.

Fun Facts

Formula: Selling Price = Cost × (1 + Markup %) | Profit = Price - Cost

Used with this

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