Calculate the selling price and profit based on the cost and desired markup percentage.
Pricing Inputs
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.
About this calculator
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.
