Free Markup Calculator

How to Use the Markup Calculator

The tool has four modes. Pick the one that matches what you already know:

1. Cost + Markup to price: Enter your unit cost and the markup percentage you want. The calculator returns the selling price, gross profit, gross margin, revenue multiplier, and cost as a percent of price.
2. Cost + Price to markup: Enter your unit cost and the price you plan to charge. The calculator works backward to your markup percentage and margin.
3. Markup and margin converter: Type a markup and see the equivalent margin, or type a margin and see the markup. Both fields stay in sync.
4. Bulk pricing table: Add a row per product with its cost and markup, watch the selling price and margin fill in, and export the whole table as a CSV.

Your cost carries over when you switch between the first two modes, so you never retype it. Add an optional shipping cost or transaction fee to see your net profit after fees.

Markup vs Margin: The Difference That Costs Merchants Money

Markup and margin describe the same gross profit, but they measure it against different bases. This is the single most common pricing mistake in ecommerce.

• Markup is profit as a percentage of cost. It answers, how much did I add on top of what I paid?
• Margin is profit as a percentage of selling price. It answers, how much of each sale do I keep?

$$\text{Markup \%} = \frac{\text{Gross Profit}}{\text{Cost}} \times 100 \qquad \text{Margin \%} = \frac{\text{Gross Profit}}{\text{Selling Price}} \times 100$$

Take a product that costs $20 and sells for $60. The gross profit is $40.

• Markup is $40 / $20 = 200%.
• Margin is $40 / $60 = 66.67%.

Same product, same profit, two very different numbers. Markup is always larger than margin because cost is always smaller than price. If a supplier quotes you a 40% markup and you think in margin terms, you will overestimate what you keep. Always ask which one a number refers to before you price against it.

How to Calculate Markup

You only need two numbers: your cost and your selling price. Here is the method by hand.

1. Find the gross profit: Subtract the cost from the selling price. For a $20 cost and a $60 price, the gross profit is $40.
2. Divide profit by cost: $40 / $20 = 2.
3. Multiply by 100: 2 * 100 = 200%. That is your markup.

The formula in one line:

$$\text{Markup \%} = \frac{\text{Selling Price} - \text{Cost}}{\text{Cost}} \times 100$$

To go the other way and price from a target markup, rearrange it:

$$\text{Selling Price} = \text{Cost} \times \left(1 + \frac{\text{Markup \%}}{100}\right)$$

A $20 cost at a 200% markup gives $20 \times 3 = $60. The calculator above runs both directions for you.

Cost-Plus and Retail Markup Pricing

Cost-plus pricing is the simplest pricing method there is. You take your unit cost and add a fixed markup to cover overhead and profit. It is fast, predictable, and easy to defend to a supplier or an accountant. The cost plus pricing calculator mode is the first tab: enter cost, enter markup, done.

Keystone pricing is the classic retail version of cost-plus. You apply a 100% markup, which doubles the cost. A $25 item becomes $50. Keystone gives you a clean 50% margin and is still the default in many physical stores.

Online sellers usually need more than keystone. Ads, shipping, returns, and platform fees all eat into a 50% margin fast. Many ecommerce and DTC brands price at a 150% to 300% markup, which is a 60% to 75% margin, to leave room for those costs. Use the retail markup calculator mode to test a few markups and watch the margin and net profit move before you commit.

The Revenue Multiplier and Break-Even ROAS

The revenue multiplier is your selling price divided by your cost. It is the same thing as 1 plus your markup expressed as a decimal.

$$\text{Revenue Multiplier} = \frac{\text{Selling Price}}{\text{Cost}} = 1 + \frac{\text{Markup \%}}{100}$$

• 100% markup is a 2.00x multiplier.
• 200% markup is a 3.00x multiplier.
• 300% markup is a 4.00x multiplier.

The multiplier is a quick gut check on how far your price sits above cost. It is easy to confuse with break-even ROAS, but they are not the same number. Break-even ROAS (the ad revenue you need per dollar of ad spend just to cover the product cost) is 1 divided by your margin, not your markup:

$$\text{Break-even ROAS} = \frac{1}{\text{Margin}}$$

At a 66.67% margin (a 3.00x multiplier), your break-even ROAS is 1 / 0.6667 = about 1.50x, and it climbs once you add shipping and fees. So a high multiplier does not mean a high ad target. If you run paid ads, pair this tool with our ROAS calculator and break-even calculator to turn your margin into a real ad target.

Markup to Margin Reference Table

Use this table to convert between markup and margin at a glance. The math is:

$$\text{Margin \%} = \frac{\text{Markup \%}}{100 + \text{Markup \%}} \times 100$$

Notice that markup climbs much faster than margin. To go from a 50% margin to a 75% margin you have to jump from a 100% markup to a 300% markup. That is why a small margin gain is worth chasing: it takes a big markup increase to get there.

Tips for Setting Markup in Ecommerce

• Price for the margin you keep, not the markup you add. Set a target margin first, then read the markup it needs from the table above.
• Add your real costs. Put shipping and transaction fees into the optional inputs so the net profit tile shows what actually lands in your account.
• Leave room for ads and returns. If you plan to run paid traffic, a thin margin leaves little to cover ad spend plus the occasional refund, so build that cushion into your markup before you launch.
• Check the whole catalog at once. Use the bulk table to price a full product line, compare margins side by side, and export a CSV for your spreadsheet or supplier.
• Revisit when costs change. A supplier price increase or a new shipping rate quietly lowers your margin. Recalculate rather than assume.

Frequently Asked Questions

What is a markup calculator?

A markup calculator turns your product cost and a markup percentage into a selling price, then shows the gross profit and gross margin that price produces. This tool also works in reverse (cost and price to markup) and converts markup to margin.

What is the difference between markup and margin?

Markup is profit measured against cost. Margin is the same profit measured against the selling price. A product that costs $20 and sells for $60 has a 200% markup but a 66.67% margin. Markup is always the bigger number.

How do I calculate markup percentage?

Subtract the cost from the selling price to get the gross profit, then divide that profit by the cost and multiply by 100. For a $20 cost and a $60 price, the profit is $40, so the markup is 40 / 20 * 100 = 200%.

What is a good markup for retail and ecommerce?

Retail often uses keystone pricing, a 100% markup that doubles the cost and gives a 50% margin. Many ecommerce and DTC brands aim higher, 150% to 300% markup, to cover ads, shipping, and returns while staying profitable.

How do I convert markup to margin?

Divide the markup by 100 plus the markup, then multiply by 100. A 50% markup converts to 50 / 150 * 100 = 33.33% margin. The converter tab does this both ways instantly.

Is a 50% markup the same as a 50% margin?

No. A 50% markup gives a 33.33% margin, and a 50% margin needs a 100% markup. They only match at zero. This is why mixing them up quietly eats into profit.

What is the revenue multiplier?

The revenue multiplier is your selling price divided by cost, or 1 plus the markup as a decimal. A 200% markup is a 3.00x multiplier. It shows how far your price sits above cost. It is not the same as break-even ROAS, which is 1 divided by your margin (about 1.50x at a 66.67% margin).

Is this markup calculator free?

Yes, it is 100% free, runs in your browser, needs no signup, and supports unlimited calculations plus CSV export of the bulk pricing table.