Markup Calculator
Enter your cost and desired markup to calculate the selling price, or enter the selling price to see your markup percentage.
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Your Pricing
Selling Price
$0
Markup
0%
Profit per Unit
$0
Gross Margin
0%
Sales Volume Projections
| Units Sold | Revenue | Total Cost | Gross Profit |
|---|
Understanding Markup vs Margin
⚠️ Common Confusion
Markup and margin are NOT the same! A 50% markup does NOT give you 50% margin. This is a costly mistake many business owners make.
What is Markup?
Markup is the percentage added to your cost to get the selling price. It's based on cost.
Markup % = (Price - Cost) / Cost × 100 Markup vs Margin Comparison
| Markup | Margin |
|---|---|
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33% | 25.0% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
Typical Markups by Industry
- • Grocery: 5-15% markup
- • Clothing: 50-100% markup (keystone pricing)
- • Jewelry: 100-300% markup
- • Restaurants: 200-400% on food, 400-600% on drinks
- • Electronics: 10-30% markup
- • Furniture: 80-150% markup
Conversion Formulas
Markup → Margin
Margin = Markup / (1 + Markup) Margin → Markup
Markup = Margin / (1 - Margin) Pricing Strategy Tips
- • Don't compete on price alone—differentiate on value
- • Test prices—small increases often don't affect demand
- • Account for ALL costs: shipping, returns, payment fees
- • Use psychological pricing ($9.99 vs $10.00)