The markup calculator answers a simple but commonly mis-asked question: if my cost is X and I want a markup of Y%, what should I charge? Markup and margin sound interchangeable but produce wildly different numbers from the same inputs. A product with a 100% markup has a 50% margin. A 200% markup is a 67% margin. A 400% markup is 80% margin. Confuse them in a vendor negotiation or a wholesale quote and you can lose serious money.
The math is straightforward in both directions. Going forward (cost + markup → price): Selling Price = Cost × (1 + Markup %). Going backward (cost + price → markup): Markup % = (Selling Price − Cost) / Cost × 100. The reference table on this page shows the conversion at common markup levels — keep it open during pricing conversations to avoid the most common mistake in retail pricing.
For ecommerce specifically, markup is a starting point, not an answer. A 200% markup looks healthy until you subtract platform fees, shipping costs, returns, and the cost of acquiring the customer through paid ads. The metric that tells you whether your pricing actually works after all those leak points is contribution margin — model that through the contribution margin calculator. For the inverse view (when you have selling price and cost and want the margin %), use the profit margin calculator.
DTC operators planning a new product launch typically need at least 70% gross margin (a 233% markup) to support meaningful paid-media spend. Anything below that and your contribution margin gets thin enough that scaling ads becomes very risky — you can grow revenue while losing money on every additional dollar of spend. Use the breakeven ROAS calculator to see what ROAS your current margin can sustain.
Frequently asked questions
What is markup vs margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A product that costs $20 and sells for $50 has a 150% markup ($30 profit / $20 cost) but a 60% margin ($30 profit / $50 selling price). Same product, same profit, two different numbers — confusing them is one of the most common pricing mistakes.
How do I calculate markup percentage?
Markup % = (Selling Price − Cost) / Cost × 100. If your cost is $25 and you sell for $60, markup is ($60 − $25) / $25 = 140%. To work the other direction (you have a target markup and want the selling price): Selling Price = Cost × (1 + Markup %). A $25 cost with a 100% markup target prices at $50.
What is a typical retail markup?
Retail markups vary by category. Apparel runs 100% to 250% (50% to 70% margin), beauty and supplements 200% to 500% (65% to 85% margin), electronics 25% to 50% (20% to 35% margin), and grocery 15% to 30% (12% to 25% margin). DTC brands typically need at least 200% markup (66% margin) to support paid ads at scale, which is why apparel and beauty dominate the DTC landscape.
Should I price using markup or margin?
Most ecommerce operators think in margin (it is what flows into your P&L), but suppliers, wholesalers, and POS systems usually quote in markup. The pragmatic answer: do your strategic pricing in margin terms (it tells you whether you can afford ads), then translate to markup when communicating with suppliers or setting cost-plus rules in your inventory system.
How does markup relate to keystone pricing?
Keystone pricing is a 100% markup — you sell for double your cost. It produces a 50% gross margin. Keystone is a useful starting heuristic for traditional retail but is usually too thin for DTC ecommerce after factoring in shipping, returns, ad spend, and platform fees. Most DTC brands need 150% to 300% markup to be sustainable.