⚡ Quick answer
To find the selling price, use the formula: Selling Price = Cost × (1 + Markup/100).
Markup Calculator
Calculate selling price from cost and markup percentage. Or find markup from cost and price.
📖 What it is
The Markup Calculator is designed to help eCommerce businesses determine the selling price based on the cost and desired markup percentage. Understanding how to set the right price is crucial for maintaining profitability.
Inputs for this calculator include the cost of the product and the target markup percentage. The output provides the selling price, absolute profit, and profit margin, allowing you to make informed pricing decisions.
It's important to note that this tool assumes you have a clear understanding of your costs and market demand. Additionally, external factors like shipping fees, platform charges, and market competition can impact the accuracy of your results.
How to use
- Enter the product cost.
- Decide on your desired markup percentage.
- Use the formula to calculate the selling price.
- Determine your profit by subtracting the cost from the selling price.
- Calculate your profit margin using the formula: Margin = (Profit / Selling Price) × 100.
📐 Formulas
- Selling Price Formula—Selling Price = Cost × (1 + Markup/100)
- Profit Calculation—Profit = Selling Price - Cost
- Margin Calculation—Margin = Profit / Selling Price × 100
💡 Example
Let's say your product cost is $50, and you want a markup of 40%.
1. Calculate Selling Price: Selling Price = 50 × (1 + 40/100) = $70.
2. Determine Profit: Profit = 70 - 50 = $20.
3. Find Margin: Margin = 20 / 70 × 100 ≈ 28.57%.
Real-life examples
Example 1
A product costs $50 with a 40% markup. Selling Price = 50 × (1 + 40/100) = $70. Profit = 70 - 50 = $20.
Example 2
A product costs $80 with a 25% markup. Selling Price = 80 × (1 + 25/100) = $100. Profit = 100 - 80 = $20.
Scenario comparison
- 40% Markup—Selling Price = $70, Profit = $20, Margin = 28.57%.
- 25% Markup—Selling Price = $100, Profit = $20, Margin = 20%.
- 50% Markup—Selling Price = $75, Profit = $25, Margin = 33.33%.
Common use cases
- Setting prices for eCommerce products.
- Determining wholesale pricing for retailers.
- Calculating prices for handmade goods.
- Establishing service fees for freelance work.
- Adjusting prices based on market trends.
- Analyzing profitability for business planning.
- Creating promotional pricing strategies.
- Evaluating competitive pricing in the market.
How it works
This calculator works by applying the markup percentage to the cost of the product to derive the selling price. Markup represents your profit as a percentage of the cost, while margin indicates your profit relative to the selling price.
What it checks
This tool checks the selling price, absolute profit, and resulting margin based on a target markup on cost.
Signals & criteria
- Cost basis
- Target markup percentage
- Derived price and margin
Typical errors to avoid
- Confusing markup target with margin target
- Ignoring payment, shipping, and platform fees in true cost
- Applying the same markup to products with very different demand elasticity
Decision guidance
Trust workflow
Recommended steps after getting a result:
- Input your product cost and desired markup percentage.
- Review the calculated selling price and profit margin.
- Adjust your markup based on market conditions and cost factors.
FAQ
FAQ
Markup vs margin?
Markup = (price - cost) / cost. Margin = (price - cost) / price. Same profit, different denominators.
What markup to use?
Depends on industry. Retail often 50–100%. Services 20–50%. Check competitors.