📖 Overview
Use this tool to set retail prices by adding a target markup percentage to your cost.
⚙️ How It Works
Adds a markup percentage to your cost price to calculate the selling price and the profit per unit.
The Formula
Markup Amount = Cost × (Markup% ÷ 100) | Selling Price = Cost + Markup
💡Markup and Margin are different! A 50% markup on a $10 item gives a selling price of $15. But the gross margin is only 33% ($5 profit ÷ $15 revenue).
Quick Reference
| Cost | 25% Markup | 50% Markup | 100% Markup | 200% Markup |
|---|---|---|---|---|
| $10 | $12.50 | $15 | $20 | $30 |
| $25 | $31.25 | $37.50 | $50 | $75 |
| $50 | $62.50 | $75 | $100 | $150 |
| $100 | $125 | $150 | $200 | $300 |
Practical Tips
💡 Calculate markup relative to cost; calculate margin relative to revenue — they measure different things.
💡 Include all overhead in your cost before applying markup.
Frequently Asked Questions
❓ What markup gives a 50% margin?
A 100% markup. If cost is $10 and you sell for $20, margin = $10/$20 = 50%.
❓ Is higher markup always better?
Only if volume stays sufficient. Very high markups can reduce sales.