🏷️ Markup Calculator

The Markup Calculator converts a cost and a desired markup percentage into a selling price, then shows you the equivalent gross margin so you can see both sides of the same pricing decision at once. It's built for retailers, wholesalers, manufacturers, and service businesses who set prices by "cost plus a percentage" but still need to know what margin that markup actually delivers, since markup and margin are frequently and easily confused.

How It Works

You enter your cost per unit and the markup percentage you want to apply. The calculator multiplies cost by (1 + markup/100) to get the selling price, subtracts cost from that price to get profit per unit, and converts the markup into the equivalent margin percentage using Margin % = Markup % ÷ (100 + Markup %) × 100. Enter a quantity and it also projects total revenue and total profit at that volume. The conversion table below the results lets you scan common markup tiers — from a thin 10% markup to a hefty 200% markup — and see the margin and resulting selling price for each, with your own entered markup highlighted if it lines up with one of the listed tiers.

Why It Matters

A 100% markup sounds aggressive, but it only produces a 50% margin — a distinction that matters enormously when you're comparing your pricing to margin-based benchmarks, calculating commission on margin dollars, or negotiating with suppliers. Pricing purely by markup percentage without checking the resulting margin can quietly leave money on the table or, just as often, make you think you're more profitable than you really are.

Tips for Accurate Results

• Use your fully landed cost per unit — including freight, packaging, and handling — not just the wholesale purchase price, or your markup will overstate real profitability.
• Remember margin is always lower than markup on the same sale; never use one number where the other is expected, especially when comparing to published industry margin benchmarks.
• Re-run the calculation whenever supplier costs change — a fixed markup percentage on a rising cost still increases your selling price, but your margin percentage stays constant only if you keep the markup ratio fixed.
• For volume-based decisions, check the Total Profit figure, not just the per-unit numbers, since quantity discounts or bulk costs can shift your effective cost per unit.