Free calculator
Markup Calculator
Type what one unit costs you and the markup you want. The calculator gives the selling price, the gross margin that markup works out to, and what each sale keeps after selling and payment fees. Check any price too. Free, no sign-up.
- Unit cost$0
- Markup in dollars$0
- Selling price$0
- Fees$0
- Profit per unit after fees$0
How it works
Markup is the profit on a unit as a share of what the unit cost you. The selling price is the unit cost times one plus the markup: a $7.50 unit with a 100% markup sells for $15.00, and with a 220% markup for $24.00.
Gross margin is the same profit as a share of the price instead of the cost, so it is always smaller than the markup: markup divided by one plus the markup. A 100% markup is a 50% margin; a 220% markup is a 68.8% margin.
Fees are the price times your fee rate: marketplace, payment and card fees as one share of the price. Profit per unit after fees is the price less the unit cost less the fees, the same arithmetic as the Items tab of the Small Business Inventory Tracker.
A worked example
The Inventory Tracker's example is a made-up candle and soap maker. Its lavender soy candle costs $7.50 a unit to make ($4.20 materials, $2.00 labor, $1.30 packaging) and sells for $24.00: a 220% markup and a 68.8% gross margin. After 10% fees ($2.40) each sale keeps $14.10, 58.8% of the price. The citrus candle costs $12.50 and sells for $38.00, a 204% markup that keeps $21.70 after fees. The $5.00 lip balm costs $1.70, a 194.1% markup that keeps $2.80. At a 100% markup the same lip balm would sell for $3.40.
Track cost, price and profit for every item
The Small Business Inventory Tracker for Excel and Google Sheets works out the unit cost and profit per unit for up to 150 items, keeps units on hand from one stock log, and flags each item at your reorder point. A dashboard shows stock value at cost, items to reorder, top sellers and sales and profit for any date range. It includes a filled-in example. $2.99, instant download.
Questions
How do I calculate markup?
Take the price, subtract the unit cost, and divide by the unit cost. A candle that costs $7.50 and sells for $24.00 has $16.50 of markup: $16.50 divided by $7.50 is a 220% markup.
What is the difference between markup and margin?
Both use the same profit. Markup divides it by the cost; margin divides it by the price. That is why a 100% markup is only a 50% margin, a 200% markup is a 66.7% margin and a 300% markup is a 75% margin.
How do I turn a margin I want into a markup?
Divide the margin by one minus the margin. For a 60% margin: 0.6 divided by 0.4 is a 150% markup. Type that markup above to see the price.
Should fees come out before or after markup?
Markup and gross margin are usually figured before fees. Selling and payment fees are a share of the price, so they come out of the profit afterwards. The calculator shows both: the margin before fees and the profit per unit after them.
What markup should I use?
It depends on your product, your volume and your other costs, like rent, ads and software, which come out of this profit too. Use the profit per unit after fees to compare prices side by side.