The method
How it is worked out
Markup = p − cc Margin = p − cp
- p
- Selling price
- c
- Unit cost
Markup Calculator
Calculate selling price and gross profit from cost and target markup. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- OverheadsRent, wages and marketing come out of the gross profit.
- DiscountsSales and promotions cut the real margin.
- Sales taxPrices here are before sales tax.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Markup Calculator
Set or review a selling price from a product's cost and chosen markup. This is useful for wholesalers and retailers who need to understand how a markup on cost differs from the percentage of selling price kept as gross margin.
How it works and an example to tryShow less
How to use the result
The calculator applies the markup percentage to unit cost to obtain the selling price and gross profit. Markup uses cost as its base; gross margin uses selling price as its base, so equal-looking percentages mean different things. Delivery, payment fees, returns, overheads and sales tax may need separate allowance.
Example to try
For an item costing 20, compare the proposed selling price and gross profit at different markups. If you need a particular gross margin, do not assume the same markup percentage achieves it. Verify whether your cost figure includes shipping and packaging.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Wholesalers setting trade prices, retailers pricing new stock, and anyone who has been quoted a margin and a markup and wants to know why the numbers differ.
Mistakes worth avoiding
- Treating a 50% markup as a 50% margin; the margin is only 33%.
- Forgetting returns, card fees and discounts eat into the gross profit shown.
- Pricing from cost alone without checking what customers will actually pay.
Questions
What does the Markup Calculator do?
Calculate selling price and gross profit from cost and target markup.
How should I use the result?
The calculator applies the markup percentage to unit cost to obtain the selling price and gross profit. Markup uses cost as its base; gross margin uses selling price as its base, so equal-looking percentages mean different things. Delivery, payment fees, returns, overheads and sales tax may need separate allowance.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a markup calculator?
Treating a 50% markup as a 50% margin; the margin is only 33%. Forgetting returns, card fees and discounts eat into the gross profit shown. Pricing from cost alone without checking what customers will actually pay.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.