Markup Calculator

Turn a cost and markup into a selling price, or convert between markup and margin in either direction.

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What you pay for the product, landed at your door.

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Your result · updates as you type

Selling price at 150% markup

$50.00

A $20.00 item sold at $50.00 is a 150% markup on cost and a 60% margin on price. Both describe the same $30.00 profit.

Selling price
$50.00
Markup (on cost)
150%
Gross margin (on price)
60%
Profit per unit
$30.00

Markup is profit divided by cost. Margin is profit divided by price. The same sale always has a bigger markup than margin, which is why a 100% markup is only a 50% margin.

Breakdown

Markup → margin (price at your cost)
25% markup
20% margin · $25.00
50% markup
33.3% margin · $30.00
75% markup
42.9% margin · $35.00
100% markup
50% margin · $40.00
150% markup · yours
60% margin · $50.00
200% markup
66.7% margin · $60.00
300% markup
75% margin · $80.00

Markup vs margin, in plain English

Markup and margin describe the same profit, measured against different things. Markup compares profit with what you paid. Margin compares profit with what the customer paid.

FormulaExample ($20 cost, $50 price)
Markup(price − cost) ÷ cost30 ÷ 20 = 150%
Margin(price − cost) ÷ price30 ÷ 50 = 60%
Price from markupcost × (1 + markup)20 × 2.5 = $50
Price from margincost ÷ (1 − margin)20 ÷ 0.4 = $50
Margin = markup ÷ (1 + markup) · Markup = margin ÷ (1 − margin)

The default numbers match the table: a $20 cost with a 150% markup gives a $50 price and a 60% margin.

Using it on your store

  • Pick one number and stick to it. Suppliers and retail buyers usually talk markup. Accountants and most profit reports talk margin. Mixing the two is how a “50%” price ends up earning a third.
  • Shopify. Enter your Cost per item on each product, so Shopify tracks profit on it as well as the price.
  • WooCommerce. Turn on Cost of Goods Sold under WooCommerce → Settings → Advanced → Features to store costs on products.
  • Repricing a catalog. Once you've settled on a markup, apply it in bulk with the Shopify bulk price editor.

What markup leaves out

Markup is on product cost only. It ignores shipping, payment fees and ads, which is why a healthy-looking markup can still lose money online. Check the full picture with the profit margin calculator.

Questions people ask

What's the difference between markup and margin?

Markup is profit as a share of cost. Margin is profit as a share of price. Markup is always the bigger number for the same sale.

What markup gives a 50% margin?

A 100% markup, also called keystone. You double the cost, and half the price is profit.

Can margin be more than 100%?

No. Margin can approach 100% but never reach it, because profit can't be bigger than the price. Markup has no ceiling.

What markup should I use for ecommerce?

Work backwards from the net margin you need after shipping, fees and ads. Many direct-to-consumer brands need well above a 100% markup to stay profitable once ads are paid.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com