Markup Calculator Classic
Calculate markup percentage, selling price, and profit for your products
Calculate Markup
Select which values you know, and we'll calculate the rest
What you paid for the product
What you sell it for
Selling Price - Cost
Profit as % of cost
Calculation Results
Formulas Used
Profit: Selling Price - Cost = $100.00 - $80.00 = $20.00
Markup: (Profit / Cost) × 100 = ($20.00 / $80.00) × 100 = 25.00%
Margin: (Profit / Revenue) × 100 = ($20.00 / $100.00) × 100 = 20.00%
Markup Analysis
Key Insights
Example Calculations
Example 1: Calculate Markup from Cost & Selling Price
Given: Cost = $80, Selling Price = $100
Calculation:
• Profit = $100 - $80 = $20
• Markup = ($20 / $80) × 100 = 25%
Result: 25% markup, $20 profit
Example 2: Calculate Selling Price from Cost & 40% Markup
Given: Cost = $50, Desired Markup = 40%
Calculation:
• Selling Price = $50 × (1 + 0.40) = $50 × 1.40 = $70
• Profit = $70 - $50 = $20
Result: Sell at $70 for 40% markup
Example 3: Calculate Cost from Selling Price & 100% Markup
Given: Selling Price = $200, Markup = 100%
Calculation:
• Cost = $200 / (1 + 1.00) = $200 / 2 = $100
• Profit = $200 - $100 = $100
Result: 100% markup = doubling your money!
Industry Markup Benchmarks
Quick Formulas
Markup = (Profit / Cost) × 100
Price = Cost × (1 + Markup/100)
Cost = Price / (1 + Markup/100)
Profit = Price - Cost
Markup Tips
Markup is based on cost; margin is based on price
100% markup = doubling your money
Lower prices often need higher markup %
Fast-moving inventory can have lower markup
Adjust markup based on competition
Understanding Markup
What is Markup?
Markup is the ratio of profit to cost, expressed as a percentage. It shows how much profit you make relative to what you paid for a product. For example, if you buy something for $80 and sell it for $100, your profit is $20, and your markup is 25% ($20/$80).
Why Markup Matters
- •Determines pricing strategy and profitability
- •Easy to calculate and apply consistently
- •Standard practice in retail and wholesale
- •Helps cover overhead and operating costs
Markup vs Margin
Markup: Profit as % of cost (what you paid)
Margin: Profit as % of selling price (what you charge)
Example: Cost $80, Sell for $100, Profit $20
• Markup = 25% ($20/$80)
• Margin = 20% ($20/$100)
Important: Markup is always higher than margin for the same product. A 50% markup equals a 33% margin. Don't confuse them when setting prices!
Extreme Markup Examples
Movie Theater Popcorn
1,275%
Average markup on popcorn
Bottled Water
4,000%
Can reach 4,000% markup
Prescription Drugs
200-5,000%
Highly variable markup
Note: High markup doesn't always mean high profit. These industries often have high overhead costs, regulations, or low sales volume that justify the markup.
Cost-Plus Pricing Strategy
Cost-plus pricing (also called markup pricing) is one of the most common pricing strategies. About 75% of companies use this method. The formula is simple: Price = Cost × (1 + Markup%)
✓ Advantages
- • Simple and easy to apply
- • Ensures you cover costs
- • Consistent across products
- • Industry standards available
✗ Disadvantages
- • Ignores customer demand
- • Doesn't consider competition
- • May miss profit opportunities
- • Not optimal for all markets