Free tool
Markup Calculator
Turn a markup on cost into a price you can check.
A markup calculator starts with what a product costs and the percentage you add to that cost. It helps you make a cost-plus pricing decision and see the equivalent gross margin, so a familiar markup rule does not get mistaken for a margin target.
Use product cost and a target markup to test a selling price. When the price is already known, comparing price with cost reveals the achieved markup. If you want the price to cover fulfillment, payment fees and a contribution target, use the Selling Price Calculator for the wider cost stack. The Product Profit & Pricing Calculator helps judge the markup against the wider order economics.
Cost-plus pricing · Cost denominator · Gross margin cross-check
Calculation mode
Use a consistent scope and cost basis for every figure.
The example is illustrative. Replace it with your own figures; results update as you type. Your entries stay in this page until you choose to copy them.
Need help finding your figures in Shopify?
Copy an input checklist for Sidekick. Store reports may not contain every cost or scenario assumption; verify the source and mark missing figures rather than guessing.
Pricing inputs
How this tool works
How markup and margin connect
Markup amount is selling price less product cost. Markup percentage divides that amount by cost; gross margin divides it by selling price. For a target markup entered as a decimal, multiply cost by one plus that markup to calculate the price.
A 50% markup means adding half the cost, not keeping half the selling price. A percentage conversion can explain that relationship without predicting a marketable price. Zero product cost makes a measured markup undefined, and a 100% target gross margin cannot be reached with a positive cost at a finite price.
Price = cost × (1 + markup). Markup = (price − cost) ÷ cost. Margin = markup ÷ (1 + markup), with rates expressed as decimals.
A 50% markup on a $40 cost
A $40 cost with a 50% markup gives a $60 selling price. The $20 gross profit is 50% of cost and 33.3% of the selling price. A 50% gross margin would instead require an $80 price.
Your full calculation
| Measure | Result · USD |
|---|---|
| Net selling price | $60.0 |
| Product cost | $40.0 |
| Gross profit per unit | $20.0 |
| Markup on cost | 50% |
| Equivalent gross margin | 33.3% |
Questions & answers
Understanding your result
Is 30% markup the same as 30% margin?
No. A 30% markup on a $100 cost gives a $130 price and a 23.1% gross margin. A 30% margin on the same cost requires a price of about $142.9.
How do you calculate margin vs markup?
Subtract cost from price for the gross profit amount. Divide by price for margin, or divide by cost for markup. Multiply either ratio by 100 to display a percentage.
How much margin is a 20% markup?
A 20% markup produces a gross margin of 16.7%: divide 0.2 by 1.2. For example, a $100 cost becomes a $120 price and leaves $20 of gross profit.
What is the difference between 10% markup and 10% margin?
A 10% markup on a $100 cost sets the price at $110 and produces a 9.1% margin. A 10% margin requires a price of about $111.1. The gap grows as the percentages increase.