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Free tool

Markup calculator

Start from the cost and the markup you want. The selling price comes out, and so does the margin that markup really gives you — usually less than people expect.
Selling price
US$80.00
Profit per item
US$40.00
Gross margin
50%

How it is calculated

Selling price = cost × (1 + markup).

Margin = markup ÷ (1 + markup). A 100% markup — doubling the cost — gives a 50% margin; a 50% markup gives 33.3%.

Questions

What markup do retailers usually use?

Keystone pricing — a 100% markup, doubling the wholesale cost — is the traditional starting point in retail. Online, payment fees, shipping and advertising come out of that margin too, so many shops need more.

How do I get a 50% margin?

Use a 100% markup. In general, markup = margin ÷ (1 − margin). The margin-to-markup calculator does the conversion both ways.

Should shipping be part of the cost?

If you pay it and do not charge it separately, yes. Anything you pay for every unit sold belongs in the cost, or the markup is built on a number that is too small.

If you run WooCommerce

WooFinance shows the markup each WooCommerce order actually achieved once fees, shipping and refunds are counted. WooFinance is our plugin; the calculator above works the same whether you use it or not.

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