Markup & Pricing Calculator
Set the right price for your products. Calculate your markup percentage and total selling price based on your cost and desired profit.
Recommended Selling Price: 0
Markup Percentage: 0%
Understanding Markup in Business
Markup is the difference between a product's selling price and its cost as a percentage of the cost. To use this calculator, enter the Cost of Goods (what you paid to make or buy the item) and the Profit Amount you wish to earn. The tool will calculate the Selling Price and the Markup Percentage. This helps ensure that your business covers all expenses and remains profitable.
Frequently Asked Questions
What is the difference between Markup and Margin? +
Markup is the percentage of profit added to the Cost Price. Profit Margin is the percentage of profit in the Selling Price. For example, if an item costs $100 and you sell it for $150, your markup is 50%, but your profit margin is 33.3%.
Why is Markup important? +
Markup ensures that you are charging enough to cover not just the cost of the item, but also your overhead costs (rent, salaries, marketing) and still have money left over as net profit.
How do I choose a Markup percentage? +
Standard markups vary by industry. For example, clothing retail often uses "keystone pricing" (a 100% markup), while grocery stores might operate on much lower markups (10-20%) but higher volume. Research your specific market to stay competitive.
What is the formula? +
Markup Percentage is calculated as:
((Selling Price - Cost Price) / Cost Price) × 100
((Selling Price - Cost Price) / Cost Price) × 100
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