Markup Calculator
Enter cost and selling price to see profit per unit, markup, and margin.
-
1Enter data
Enter content, paste text or load a file from disk. -
2Click the button
The tool will immediately process your data in the browser. -
3Get the result
Copy the finished text or save the file to your device.
return "Result ready in 0.1s";
}
Rate this tool:
Related tools
Other tools you may find usefulHow to Use the Markup Calculator
The markup calculator turns two numbers — cost and selling price — into three results: profit per unit, markup, and margin. All you have to do is enter values in two fields.
- Cost — a field in US dollars, default $40.
- Selling price — a field in US dollars, default $100.
When you change either value, the results update immediately. With the default settings, you will see profit per unit $60.00, markup 150.00%, and margin 60.00%.
The calculations run locally in your browser. The amounts you enter are not sent anywhere, and you do not need to create an account or save anything — open the page, enter your numbers, and see the result right away.
Think of the calculator as a quick way to check a single transaction. If you want to compare several scenarios, change the values and see how profit, markup, and margin change.
How Markup Differs from Margin
Markup and margin describe the same profit, but they compare it to two different reference points. Markup is calculated against cost, while margin is calculated against selling price. That is why, when profit is positive, markup is higher than margin.
- markup = profit ÷ cost × 100%,
- margin = profit ÷ selling price × 100%.
With a cost of $40 and a selling price of $100, profit is $60.00. Markup is $60.00 ÷ $40 × 100% = 150.00%, and margin is $60.00 ÷ $100 × 100% = 60.00%. Both numbers are correct — they simply show a different view of the same transaction.
| Measure | Reference Point | Formula | Result for $40 and $100 |
|---|---|---|---|
| Markup | cost | profit ÷ cost × 100% | 150.00% |
| Margin | selling price | profit ÷ selling price × 100% | 60.00% |
In conversations with business partners, you will hear markup more often, because it is easy to say how much you add to cost. When analyzing sales profitability, margin is often more convenient, because it shows what portion of the price remains as profit.
How to Calculate Profit per Unit
Profit per unit is the difference between selling price and cost: profit = selling price - cost. This is the most important number in the whole set, because markup and margin are only derived from it.
The calculator shows profit in dollars. For a cost of $40 and a selling price of $100, the result is $60.00. If the selling price falls below cost, profit will be negative — a clear signal that selling at that price contributes to a loss.
Calculating profit per unit makes sense separately for each product, because each product has a different cost and a different price. Only then should you multiply the result by the number of units sold to estimate profit for the entire batch.
Keep in mind that profit per unit is not the same as the cash left in your account after all sales. The calculator uses only the cost and selling price that you enter.
How to Set Cost and Selling Price
The quality of the result depends on what you enter in the fields. For cost, include everything you actually pay to get the product ready for sale — for example, the purchase of goods, materials, components, labor, or packaging, if you want to include them.
In the selling price field, enter the amount for which you actually sell one unit. Both fields are fully editable, so you can easily test several scenarios and compare how a price change affects profit, markup, and margin.
If you want to include additional fees, add them to cost yourself or subtract them from the price. The calculator does not know your platform's rates — you decide which numbers go into the calculation.
Selling on Amazon, Etsy, eBay, Shopify, Vinted, or TikTok? Check the current pricing and terms of your sales channel, because rates change over time and only fresh data gives you a reliable picture.
Limitations: What the Calculator Does Not Include (Fees, VAT, Shipping)
The markup calculator works only with two values: cost and selling price. It does not add anything on its own, so the result is only as accurate as the data you enter.
- commissions and fees from sales platforms,
- VAT, sales tax, and other taxes,
- delivery, shipping, packaging, and return costs,
- advertising costs, discounts, and promotions,
- currency exchange rates and conversions,
- payment, storage, or subscription fees,
- fixed costs that do not depend on the number of units sold.
For this reason, treat the result as a rough benchmark, not as a complete profit and loss statement for your entire business. It works well for quickly comparing products, but pricing decisions should also consider current fee schedules, contracts, and your own costs.
The tool does not save the amounts you enter and does not keep a calculation history — the data disappears when you close the page. It also does not create profiles or connect to your store accounts.
Frequently Asked Questions
What is markup?
Markup is profit expressed as a percentage of cost. It tells you how much you add to cost to arrive at the selling price. You calculate it as: markup = profit ÷ cost × 100%.
How do I calculate markup on a product?
First determine profit by subtracting cost from selling price, then divide profit by cost and multiply by 100%. For a cost of $40 and a selling price of $100, profit is $60.00, so markup is 150.00%.
How does markup differ from margin?
Markup compares profit to cost, while margin compares profit to selling price. With a cost of $40 and a selling price of $100, markup is 150.00% and margin is 60.00%. These are two different measures of the same transaction.
How do I calculate margin given cost and selling price?
Calculate profit by subtracting cost from selling price, then divide profit by selling price and multiply by 100%. In the calculator, the margin result appears automatically alongside markup and profit per unit.
What is a good markup in e-commerce?
There is no single universal number, because it depends on your industry, costs, and sales channel. Check your platform's current fees and rates, then set a price at which profit per unit is satisfactory to you.
Does the markup calculator show profit per unit?
Yes, alongside markup and margin, you will see profit per unit in dollars. For the default values, cost $40 and selling price $100, the calculator shows $60.00 in profit.
See also — related tools
Default values and results are for guidance only — check current costs, platform fees, and tax rules before making a decision.