Markup Calculator

Sales markup calculator, calculate the markup percentage, retail price (revenue), and gross profit based on the original product cost and desired gross margin. Input the cost and required gross margin to determine the selling price, markup percentage, and gross profit.

What is the markup in sales?

The core of sales is making a profit by selling something for more than it costs you. Markup (or markon) is just the profit you make compared to your cost, set to keep your business humming.

For example, buy an item for $80, sell it for $100—you pocket $20. That’s a 25% markup ($20 profit ÷ $80 cost).

How to calculate markup percentage?

Markup = ((Final price – Cost price) / Cost price) x 100

Example: if you sell a product for $100 that costs you $60 to produce, your markup would be:

Markup = ((100 – 60) / 60) x 100 = 66.67%

How to use markup calculator?

Markup Calculator (or sales markup calculator) is your go-to tool for figuring out how to price your stuff to make a solid profit.

1. Enter the Cost Price: Input the amount it costs to produce or acquire the product.

2. Specify Markup Percentage: Decide the percentage of profit you want to add (e.g., 50%).

3. Calculate Sale Price: The calculator applies the formula: Sale Price = Cost Price × (1 + Markup Percentage)

4. Review and Adjust: Ensure the price aligns with market trends and customer expectations.

Markup calculate examples

You buy an item for $80, and you want to make a 25% markup. So, you divide $80 by 0.25 (25%) to get $20. That’s your profit. Add that to your cost ($80) to get $100, which is your selling price.

Why Use a Markup Calculator?

  • Accuracy: Eliminates manual calculation errors.
  • Time-Saving: Quickly generates pricing for multiple products.
  • Profit Optimization: Ensures consistent profit margins.
  • Competitive Pricing: Helps balance profitability with market competitiveness.

Benefits of Using a Markup Calculator for Your Business

  • Improved Financial Planning: Clear insight into profit margins aids budgeting.
  • Scalability: Easily apply markups across product lines.
  • Transparency: Understand the relationship between costs, prices, and profits.
  • Customizable: Adjust markups based on product type, market demand, or business goals.

Markup vs. Margin: What’s the Difference?

While often confused, markup and margin are distinct:

  • Markup: The percentage added to the cost price to determine the final retail price.
  • Margin: The percentage of the retail price that is profit.

Example: A $20 item with a 50% markup sells for $30. The profit ($10) is 33.33% of the selling price, so the margin is 33.33%.

How do I choose the right markup percentage?

The ideal markup depends on:

  • Industry standards (e.g., retail often uses 50–100%).
  • Operating costs (e.g., rent, labor).
  • Market competition and customer willingness to pay. Research your industry and test different percentages to find the sweet spot.

Markup calculator is free?

Yes, our markup calculator is free to use. It’s a simple tool that helps you calculate the markup percentage, retail price, and gross profit based on the original product cost and desired gross margin.

Can I embed this calculator on my website?

Yes, you can embed this calculator on your website. Just copy the HTML code and paste it into your website.

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