Markup calculator
Enter your cost and the markup you want to add to get the selling price, or enter cost and price to see your markup. The matching profit margin is shown next to it, since the two are easy to mix up.
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Selling price
$40.00
- Profit
- $20.00
- Margin
- 50%
How it's calculated
- Price
- = cost × (1 + markup)
- Markup
- = (price − cost) ÷ cost × 100
- Margin from markup
- = markup ÷ (1 + markup)
Example
A $20 item with a 100% markup sells for 20 × 2 = $40. The profit is $20, which is a 50% margin. A 200% markup on the same item gives $60, a 66.7% margin.
Markup vs margin at a glance
25% markup = 20% margin. 50% markup = 33.3% margin. 100% markup = 50% margin. 200% markup = 66.7% margin. 300% markup = 75% margin. Many retail rules of thumb (“keystone” pricing) mean a 100% markup.
When markup is the easier number
Markup is handy when you start from supplier prices: multiply the cost by one number and you have a price. Check the margin before you publish it, because that's the share of each sale left to pay for shipping, fees and ads.
FAQ
How do I calculate markup?
Subtract the cost from the price, divide by the cost and multiply by 100. A $20 item sold at $50 has a (50 − 20) ÷ 20 = 150% markup.
How do I add a markup to a cost?
Multiply the cost by (1 + markup). A 60% markup on $25 is 25 × 1.6 = $40.
Is a 100% markup a 100% margin?
No. A 100% markup doubles the cost, which is a 50% margin.
What markup do dropshippers use?
It varies by product and traffic source. Because ads, fees and refunds come out of the gap between cost and price, paid-traffic stores often use higher markups than physical shops. Check yours with the break-even ROAS calculator.
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