Markup Calculator
Calculate markup percentage, selling price, and profit margins for your products and services with our comprehensive markup calculator.
Calculator
Enter your information to calculate results
Calculation Breakdown
How It Works
The markup calculator helps determine pricing by calculating the relationship between cost, markup, and selling price.
Key Formulas
Selling Price: Cost Price + Markup Amount
Markup %: (Markup Amount ÷ Cost Price) × 100
Margin %: (Markup Amount ÷ Selling Price) × 100
Markup Amount: Cost Price × (Markup % ÷ 100)
Markup vs. Margin
- Markup: Percentage added to cost price (based on cost)
- Margin: Percentage of selling price that is profit (based on selling price)
- Markup is always higher than margin for the same dollar amount
- Both are important for pricing strategy and profitability analysis
Examples
Example 1: 50% Markup
Cost Price: $100
Markup: 50%
Markup Amount: $50
Selling Price: $150
Profit Margin: 33.33%
Example 2: 100% Markup
Cost Price: $75
Markup: 100%
Markup Amount: $75
Selling Price: $150
Profit Margin: 50%
Industry Standards
Retail: 50-100% markup
Restaurants: 200-400% markup
Jewelry: 100-300% markup
Electronics: 10-30% markup
Clothing: 100-200% markup
Services: 20-50% markup
Compare
Pricing Strategy Considerations:
- Competition: Research competitor pricing before setting markup
- Value Perception: Higher markup possible for premium or unique products
- Volume vs. Margin: Lower markup may increase sales volume
- Market Position: Luxury brands can command higher markups
Break-Even Analysis:
Consider fixed costs when setting markup:
- Rent, utilities, salaries (fixed costs)
- Marketing and advertising expenses
- Insurance and business licenses
- Target profit margins for sustainability
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