Markup Percentage Calculator: Easily Determine Your Profit Margin
Use the calculator by entering your item’s cost and selling price; it instantly returns the markup percentage. A 40 USD cost and 60 USD selling price gives a 50 % markup. Electronics retailers average markups near 43 % (Statista, 2022).
Markup Percentage Calculator
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How to use the tool
Fill “Price” with your selling price, e.g., 99.95 or 310 USD.
Fill “Cost” with what you paid, e.g., 62.40 or 205 USD.
Press Calculate; the tool shows your markup percentage instantly.
Compare scenarios by adjusting either field to see how markup shifts.
Typical retail markups range 20 – 50 % depending on sector (ShopKeep blog, 2022).
Cost inputs should be > 0 USD; zero cost makes markup undefined (SBA, 2023).
Use gross margin, not markup, for income-statement reporting (Investopedia, 2023).
Markup above 70 % often signals premium pricing strategies (Harvard Business Review, 2021).
FAQ
What is markup percentage?
Markup percentage is the percentage difference between cost and selling price relative to cost (Investopedia, 2023).
How does the calculator work?
It subtracts cost from price, divides by cost, multiplies by 100, and displays the result instantly.
Can I use it for services?
Yes. Treat labor and materials as cost, then enter your planned fee as price (SBA, 2023).
Why isn’t zero cost accepted?
Division by zero is undefined; a positive cost is required for any meaningful markup.
Is markup the same as margin?
No. Margin divides profit by selling price, while markup divides profit by cost (Shopify Help Center, 2022).
What’s a healthy markup?
Most small retailers aim for 30 – 50 % to cover overhead and profit (SBA, 2023).
How often should I recalculate?
Recompute whenever costs change or quarterly in stable markets (CPA Journal, 2021).
Quote from experts on pricing?
“Price must exceed total cost by enough to fund growth and risk” (McKinsey Pricing Report, 2020).
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