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Markup calculator

Turn a cost into a price. See markup, the margin it produces, and profit per unit side by side.

Per-order costs people forget

Gateway rate only. LaunchMyStore adds no platform transaction fee.

Markup150.0%
Gross margin60.0%
Gross profit per unit$15.00
Shipping, packaging, ads− $0.00
Payment fees− $1.03
Profit per order after all that$13.98
Contribution margin55.9%

Healthy. You can afford to test more ad spend.

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1

Enter the cost

What you pay per unit including freight to you.

2

Enter a price or a markup

Type the price to get the markup, or type the markup you want to get the price.

3

Read markup, margin and profit

Both percentages are shown so you never confuse them again.

How markup works

Markup is the amount you add to cost, expressed as a percentage of that cost. A 100% markup doubles the cost; a 50% markup adds half. It is the language of wholesale, where a buyer knows the cost and needs a price fast.

The catch is that markup overstates how much of each sale you keep. A 100% markup sounds generous but is a 50% margin. A 25% markup is a 20% margin. This calculator shows both so the conversation with your supplier and the number in your bank account match.

Typical markups by category

Keystone pricing, a 100% markup, is the retail default for apparel, gifts and home goods. Jewelry and cosmetics often run 200% to 400%. Electronics and groceries sit at 10% to 30% and rely on volume. Handmade sellers should start at keystone and add a labor line to cost before applying it.

Whatever the category, apply markup to the fully loaded cost, not the invoice price. Freight, duties, packaging and returns belong in the cost before you mark it up.

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Frequently asked questions

What is the markup formula?
Markup % = (price − cost) ÷ cost × 100. To price from a markup: price = cost × (1 + markup ÷ 100).
Is 50% markup the same as 50% margin?
No. A 50% markup on a $10 cost gives a $15 price and a 33% margin. A 50% margin needs a $20 price, which is a 100% markup.
What is keystone pricing?
Doubling the wholesale cost, a 100% markup. It is the traditional retail starting point for clothing, gifts and home goods.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 150% markup is 1.5 ÷ 2.5 = 60% margin. The calculator does this for you.
Should markup include shipping to the customer?
Only if you offer free shipping. Then it is part of your cost and should be inside the number you mark up.
What markup should a new store use?
Start at keystone (100%) for physical goods and adjust with the profit margin calculator once you know your real ad and shipping costs.

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