Markup Calculator
Find the ideal selling price for your items by applying a desired markup percentage to your cost basis.
Calculator Inputs
LiveHow to use the Markup Calculator
- 1Enter the product cost of goods sold.
- 2Enter your desired markup percentage (e.g. 50% or 100%).
- 3Review the calculated selling price, total profit dollar amount, and equivalent profit margin.
How Markup is Calculated
Markup calculates the extra percentage added on top of a product cost to arrive at the final retail price.
Markup is the percentage premium over cost needed to cover overhead and target profits.
- 1Selling Price = $45 × (1 + 0.75) = $45 × 1.75 = $78.75
- 2Profit = $78.75 - $45 = $33.75
- 3Profit Margin = ($33.75 / $78.75) × 100 = 42.86%
What affects Markup results
- Competitor pricing and market tolerance.
- Indirect overhead costs such as rent, salaries, and marketing.
- Inventory turnover rate and holding costs.
Frequently Asked Questions
Can markup be higher than 100%?
Yes. For instance, if an item costs $10 and is sold for $30, the markup is 200%, whereas the margin is 66.7%.
What is keystone pricing?
Keystone pricing is a standard retail practice where products are marked up by exactly 100% of cost, resulting in a 50% gross margin.
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